Representations and Warranties insurance covers financial loss arising from breaches of warranties provided in the Special Purpose Agreement made in relation to mergers and acquisitions.
Each Representations and Warranties insurance policy is a bespoke policy tailored to meet the specific needs of a transaction.
The coverage is highly customized to each transaction.
The policy period generally matches survival period of representations and warranties.
The cover is available for the complete set of representations and warranties made by a seller concerning a target company or business industry, including representations and warranties concerning environmental and intellectual property matters.
Both buyers and sellers can benefit from the Representations and Warranties insurance, and therefore either buyer or seller can be the holder of the policy:
Buyers are reimbursed for losses resulting from inaccuracies in representations and warranties made by the seller, enabling buyers to recover losses directly from the insurer without having to locate and pursue the seller and its assets
Seller-side policies respond to losses resulting from claims made by the buyer for an inaccuracy in representations and warranties made by the seller about the acquired company or business, protecting the seller from having to return a portion of the purchase price
If you want to report a loss under an M&A police please phone our claims department phone +45 3373 2400 and we will help you.
