A large Canadian video game developer was looking to acquire some IP relating to the early stage development of a video game.

The sellers of the IP were not sophisticated and limited in covenant strength and the buyer was looking for a novel insurance solution to ensure the sellers (who were being incentivised by the buyer under the transaction) did not carry excess liability under the transaction documents. Given the stage of the video game the buyer had not carried out extensive due diligence as the investment was speculative.

Icen Risk was able to offer a novel buyside insurance product which facilitated the transaction for the Canadian buyer. In the absence of third party due diligence Icen used its extensive IP underwriting expertise to the deliver a policy which was also subject to Canadian law.