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. With the significant rise in the use of W&I insurance, lawyers are increasingly involved in the stipulation and negotiation of W&I insurance policies. 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.