Representations and Warranties Insurance provides coverage for unknown breaches of the seller representations and warranties that are discovered post-signing and/or post-closing. Both buyer-side and seller-side products are available.

 

Benefits of Buyer-Side Representations and Warranties Insurance

Benefits of Seller-Side Representations and Warranties Insurance

Distinguishes a buyer’s bid in an auction process Provides more protection over a longer period than a traditional indemnity Protects management relationships by avoiding litigation and internal noise in the event of a claim Allows for efficient claims resolution, as buyers are dealing with skilled, claim-paying insurance carriers Bridges a negotiation impasse Limits credit risk for buyer to collect on claims Offers indemnity where none would otherwise exist (e.g., public to private deal)

Allows for less monies left dormant in escrow Provides for a clean exit, allowing greater distribution to partners at closing Bridges a negotiation impasse Backstops a negotiated indemnity Protects minority investors