Warranty & Indemnity
Warranty & Indemnity Insurance
Warranty & Indemnity (W&I) Insurance is considered the most important transaction insurance. It protects against unknown risks in M&A transactions which could present a financial disadvantage to the buyer as well as the seller.
While guarantees in the contract can be a pitfall for the seller, these are exactly the type of commitments which are important to the buyer. W&I Insurance can bridge this gap: For the buyer, it offers a kind of first-party insurance, and for the seller, liability insurance.
W&I Insurance doesn't just insure guarantees and indemnities from the purchase contract. Even future obligations resulting from inaccuracies in contractual guarantees and stipulations are covered by the insurance.
Benefits for buyers and sellers at a glance
- Competitive advantages and freedom to negotiate
- Optimisation of M&A deals
- Transaction risks are insured
- Barriers to the transaction can be dealt with