Hauser Insurance Company Explains Tax Liability Insurance

Carrying out numerous business transactions requires business owners to analyze previous tax exposures or tax-specific securities frequently. Successful closing of business transactions can be achieved through a well-formulated tax liability insurance policy. Hauser Insurance is a company in the insurance industry that enlightens business owners on the role of tax liability insurance in business undertakings. The company argues that tax liability insurance serves as a representation, warranty, and indemnity commonly abbreviated as RWI insurance policy when a business has potential tax exposures. RWI, however, operates differently regarding known and unknown tax exposures. While tax liability insurance considers known tax exposures, RWI excludes all the known tax exposures from its coverage.

Representation, warranty, and indemnity insurance cater for Mergers and Acquisitions transactions. Nevertheless, in the absence of RWI insurance, tax liability insurance offers an alternative to buyer protection regarding known tax exposures. Moreover, tax liability insurance can replace the need for seller protection or price adjustment. Hauser Insurance explains that tax liability insurance is formulated to cater for the loss of items such as taxes and related interests as well as penalties. However, the insurance company states that the tax liability insurance excludes some types of losses from its coverage, for instance, any changes in insurance laws that come up after the onset of the coverage.

Hauser Insurance notes that a business should provide a tax analysis that demonstrates insured tax positions for it to acquire tax liability insurance. Further, the company suggests that a well-crafted tax liability insurance should cater for a merger or acquisition closing. The insurance can also cover other transactions with identified tax exposures. Hauser Insurance Group is an Ohio-based privately held insurance company. Founded in 1971, the company provides insurance solutions, risk management, and benefits services to employees in businesses of all sizes.

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