Warranty and indemnity

Warranty and Indemnity insurance

Warranty and indemnity (W&I) insurance is an established risk transfer tool in private mergers and acquisitions transactions. The process of structuring and implementing an insurance policy is always tailored to the specific requirements of each deal. Key to placing W&I insurance is the documents that are exchanged between the parties, including confidentiality undertakings, non-reliance letters and due diligence reports.

W&I insurance is available to buyers and sellers in a merger and acquisition transaction. It provides cover for losses which arise as a result of breaches of warranties and indemnities. It is particularly relevant in the following types of situation:

1. •

   where a seller is unable or unwilling to give the warranties that the buyer requests