Alternative Risks Insurance

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Why buy
Alternative Risks Insurance ?

Fusion provides financial protection to the insured in the event that an identified risk materializes.

The policy protects you against losses resulting from the identified risk.

Risks that we have insured tend to have common fundamental characteristics and be driven by one of the following motivations or benefits:


Transfers an uncertain liability from the insured to the insurer

Facilitating a transaction

Cash release

Greater balance sheet certainty

Enables business opportunities that have ben blocked by claims or disputes

Caps future financial risk

What is Alternative Risks Insurance ?

Alternative Risks Insurance addresses one­-off legal, judicial and legislative risks that may inhibit or prevent completion of transactions, or present undue risk exposure to involved parties.

Key considerations include:

– Motivation of the insured

– Advice from subject matter expert

– Jurisdiction

– Loss profile

– Attachment point

Fusion will closely assess:

If key information is available or obtainable

The quality of diligence conducted

The availability and quality of pertinent to analyse

The availability of third party expert who can advise

The policy will provide protection for:

Settlement costs

Legal costs

Experts’ costs


Other potential liabilities arising in the context of a particular dispute

Product Protection Features

Policy Limit
Policy Period
Legal Fee

Fusion’s team draws on experience from a variety of backgrounds, including lawyers, chartered accountants / CPAs, specialty insurance underwriters and claims executives, and InsurTechnologists.

This enables us to assess and structure solutions for a variety of risks and scenarios.

Policy Limit

Fusion’s aggregate policy limits typically range from USD / AUD 2m to 25m.


Fusion and the insured will agree on the retention in order to align interests.

Policy Period

The policy period will match the underlying risk period, up to a maximum of 7 years. 


Fusion requires information and conduct rights in respect of the risk. These are negotiable on a case by case basis. Fraud or misrepresentation of the insured are excluded.


As this is very much a bespoke protection, the range of premiums expressed as a rate on line based on the limit of liability are usually in the range of 8% to 20% in the Asia Pacific region.

Legal Fee

Fusion will require an expense agreement to be entered into before commencing formal underwriting. This is to cover the cost of instructing external counsel. Legal fees typically range from US$ 30,000 – US$50,000. The fee is charged in addition to the premium.

How does Alternative Risks Insurance (Offline) work?

This process usually takes between 2 to 4 weeks.


1 Initial Discussion – contact your advisor, broker or Fusion to discuss the suitability and likelihood of an Alternative Risks Insurance

2 Submission terms provided to Fusion. Including detailed advice from the advisors setting out the background, the potential exposures and an analysis of the likelihood of the liability arising

3 Fusion provides non-binding terms4 Appointment of Fusion as Insurer5 Detailed Underwriting – assessment of the risk in conjunction with Fusion’s external advisors6 Negotiation of policy wording

7 Policy Binding + Signing.