Insurance on Losing a Contract

searcher profile

April 01, 2022

by a searcher from Harvard University - Harvard Business School in New York, NY, USA

There is a company with large revenues and very high margins. The problem is customer concentration. All the business comes from three large corporations. Is there a way to protect the company in case of loss of contract? Such as specific insurance policies or Captive Insurance solutions?


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Reply by an investor
from University of Rochester in New York, NY, USA
^redacted‌ ^redacted‌ there is coverage available to protect against a key customer's business shutting down due to an insured peril (business income) but unfortunately none to my knowledge for general loss of contract (ex. customer is unhappy with change of ownership.) Reps and Warranties Insurance (newly available to SMB) would protect you in the event there is a breach of contract by the seller (ex. Seller represents there are binding long term contracts in place and that is not the case.)

Would be happy to one off and further discuss. -Tom
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Reply by a lender
from California State University, Sacramento in Seattle, WA, USA
^redacted‌ has a Reps and Warrants insurance program. Maybe relevant?
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