Protecting value when businesses change hands.
Mitigating risk. Maximising value.
Whether you’re buying or selling a business, unforeseen liabilities can derail even the most carefully negotiated transaction.
Warranty & Indemnity Insurance transfers the risk of certain unknown breaches to an insurer, helping provide greater certainty around financial exposure and allowing deals to move forward with more confidence.
It can also help bridge the gap between the protections a buyer wants and the ongoing liability a seller is prepared to retain after completion.
Protection for buyers and sellers.
01.
Buy-Side Protection
Provides the buyer with direct protection against certain covered breaches of warranties or indemnities in the sale agreement.
02.
Sell-Side Protection
Helps protect sellers against certain claims arising from warranties or indemnities given as part of the transaction.
03.
Unknown Breaches
Transfers certain unknown warranty and indemnity risks to the insurer, helping provide greater certainty after completion.
04.
Financial Protection
Can reduce the need for buyers to rely solely on the seller’s financial position if a covered breach is discovered after the sale.
05.
Extended Warranty Protection
Cover can provide protection beyond shorter contractual warranty periods where agreed within the policy.
06.
Tax and Financial Statement Risk
W&I Insurance can help mitigate certain risks connected with warranties relating to tax, financial information and the condition of the business.
Different sides of the deal. Different priorities.
Confidence to move forward.
For buyers, W&I Insurance can provide greater certainty around the transaction, strengthen protection where the seller may have limited financial resources post-sale, extend coverage beyond contractual warranty periods and provide additional comfort to lenders and investors.
Clean exits, protected legacies.
For sellers, W&I Insurance can help reduce ongoing exposure after completion, provide protection against accidental non-disclosure and allow greater confidence in accessing the proceeds of the sale.
Tailored to the deal.
Information we typically need.
To begin the process, insurers will generally need details about the business, including its industry and revenue, together with key transaction documents such as the contract of sale and due diligence materials.
Timing and structure matter.
The advisory teams involved, structure of the transaction and proposed timing all influence how the policy is negotiated and placed with specialist insurers.
Talk to our warranty & indemnity insurance specialists.
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Talk to our warranty and indemnity specialists.
