Corporate transactions are carefully negotiated to allocate assets and liabilities. However, one valuable asset is frequently overlooked and may fall by the wayside during this process: the right to recover under historic insurance policies. This can result in one entity holding the liabilities, while rights under the insurance policies purchased to cover the risk remain with another entity. Companies considering any form of corporate transaction should consult with experienced coverage counsel to ensure transaction documents allocate rights to insurance coverage as intended.

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