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Representations and Warranties Insurance

Inaccuracies in representations and warranties made by the seller or the target company in connection with a merger or acquisition can result in costly liabilities. Buyers can be left without the ability to recover losses arising from these inaccuracies from the seller.  Sellers can be forced to hand back a portion of the purchase price.

Representations and Warranties Insurance helps protect buyers and sellers from financial losses resulting from inaccuracies in representations and warranties made in connection with mergers, acquisitions, divestitures and other business transactions. Policies can be crafted to address both buyer-specific and seller-specific concerns. Typical insureds include private equity and venture capital firms, portfolio companies, bidders in auction situations, financially distressed companies selling assets, divisions or subsidiaries and individuals and families selling closely-held companies.

Features and Benefits Back To Top
  • Underwritten by our Mergers & Acquisitions Insurance Group, a leading provider of transactional risk insurance solutions  
  • Tailored to transactions with values from $25 million to $1 billion
  • Coverage highly customized to each transaction
  • Policy period generally matches survival period of representations and warranties but can be extended for a longer period on buyer-side policies
  • Up to $50 million in limits for any one transaction; larger programs can be arranged on a case-by-case basis
  • Premiums range from 2-5% of the limit of liability purchased and deductibles are typically between 1-3% of transaction value
  • Buyers 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
  • 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
 
Marketing Materials Back To Top

Representations and Warranties Product Highlight Sheet
An overview of Representations and Warranties Insurance

Mergers and Acquisitions Transactional Risk Solutions
An overview of Mergers and Acquisitions Transactional Risk Solutions

Webcast - Transactional Insurance:  Navigating Transactional Liability in Turbulent Economic Times

The Deal and Merrill DataSite's Webcast on M&A Risk Management
Jennifer Richards, Senior Vice President of Chartis' M&A Insurance Group, along with a panel of other deal experts, discuss how to maximize deal value in today's risky deal making environment

Transactional Insurance: Maximizing Shareholder Value in Mergers & Acquisitions Transactions
An article written by Jennifer Richards, Senior Vice President of the Mergers & Acquisitions Insurance Group

Enhancing Lender Protection
An article written by Matthew G. Heinz, Assistant Vice President and Jennifer Richards, Senior Vice President of the Mergers & Acquisitions Insurance Group

Transactional Insurance Protecting Venture Capital, Private Equity and Family Owned Business Sellers in the Current Buyer’s Market
An article written by Matthew G. Heinz, Assistant Vice President and Maria Nikeas, Senior Associate of the Mergers & Acquisitions Insurance Group

Facilitating Deals in Challenging Times
An article written by Matthew G. Heinz, Assistant Vice President of the Mergers & Acquisitions Insurance Group

Insuring Against Successor Liability With Contingent Liability Insurance
An article written by Michael Rappaport, Senior Vice President and Maria Nikeas, Senior Associate of the Mergers & Acquisitions Insurance Group

Claims Management and Scenarios
An article written by Matthew G. Heinz, Assistant Vice President and Maria Nikeas, Senior Associate, of the Mergers and Acquisitions Insurance Group

Questions and Answers
Q&A for Representations and Warranties Insurance

Reasons Why Clients Purchase R&W Insurance
Overview listing reasons why clients purchase Representations and Warranties Insurance

Deal Summary - Distinguishing a Bid in the Auction Context
Review of a sample case where Chartis' solution was distinguishing a bid in the auction context

Deal Summary - Facilitating the Deal
Review of a sample case where Chartis' solution helped facilitate the deal

Deal Summary - Insuring an Indemnity
Review of a sample case where Chartis' solution was insuring an indemnity

Deal Summary - Insurance Provides Additional Comfort
Review of a sample case where Chartis' solution was providing additional comfort

Deal Summary - Reducing Escrow Amount
Review of a sample case where Chartis' solution was reducing escrow amounts

For further information about R&W Insurance, please contact a member of the M&A Insurance Group at (212) 458-2361

Educational Presentations:

In the event you would like members of the Mergers & Acquisitions Insurance Group to give an educational presentation on R&W Insurance to members of your group or firm, please contact us at (212) 458-2361.

Claims Back To Top

We have a claims team dedicated to Representations and Warranties Insurance.  These seasoned professionals specialize in litigation surrounding complex transactions and in processing customer claims in a professional and expedient manner.

To report or check the status of a claim please contact us:
Tel: (212) 458-1139
Fax: (866) 452-0138

Mail: c-Claim for Financial Lines
Domestic Claims
175 Water Street, 9 Fl.
New York, NY 10038

Download a claim form for submission.