CFC adds coverage of title to shares risks

London-based CFC Underwriting Ltd. said Tuesday it expanded its suite of transaction liability insurance policies to cover title to shares risks.

Title to shares insurance is available on an excess basis up to a maximum limit of $150 million for losses arising out of a breach of title and ownership representations and warranties in a mergers and acquisitions deal.

Coverage can be placed as part of a single buy-side representations and warranties placement, CFC said.

The policy covers standard representations and warranties, including:

• The seller not being the legal or beneficial owner of shares in the target company or interest in a private equity fund.
• Target shares being subject to an undisclosed mortgage, charge or encumbrance.
• Title to shares being defective due to a previous document or instrument not being properly registered.
• Non-compliance with shareholder consents.