Helping Your Deal Execution

Why use Representations and Warranties Insurance?

Representation and Warranties Insurance (RWI), also known as Warranty and Indemnity Insurance in EMEA, simplifies the M&A deal process and protects each party’s financial interests.

Buyers rely on the representations and related disclosures made by a target company in an acquisition agreement. RWI provides protection when some of what Buyers are told is untrue by insuring against breaches of those representations. By transferring the risk of a misrepresentation to an insurer, the historical requirement of the seller to hold back sale proceeds for an indemnity is reduced or eliminated entirely.

RWI can accelerate your deal timeline by reducing negotiations of the representations and warranties. It can also protect sellers’ proceeds from indemnity claims.

Extent of Coverage

Subject to certain terms and conditions and satisfactory underwriting, we can insure market-standard representations made by sellers in an M&A transaction, including financial statements, intellectual property, taxes, employment, environmental and regulatory representations specific to your target company.