W&I Insurance is a tailored product which covers either the buyer or the seller for loss arising from breach of the warranties and indemnities given in an acquisition agreement.
Reich Insurance works with private equity, corporate clients, and their legal and financial advisors to analyse exposures and transfer risk during M&A transactions.
Mergers and Acquisitions Insurance (M&A Insurance) is increasingly becoming a mainstream product that facilitates the smooth running of transactions. M&A Insurance comprises warranty and indemnity insurance (W&I Insurance), specific tax risk insurance and contingent risk insurance. These policies can provide cover for unknown risks or for specifically identified issues.
All policies are tailored to individual transactions and the policies are generally straightforward and typically contain few standard exclusions; they are negotiated and approved by insurers and their counsel prior to binding.
- Facilitating a clean exit for sellers
- Minimise or remove escrow requirements
- Provide recourse for buyers where the seller is unwilling or unable to provide recourse
- Speed up the negotiation of warranties (often a time consuming process)
- Distinguishing a bid in a competitive auction by negotiating more limited recourse against the seller by supplementing the contractual recourse with W&I Insurance
- Protects a buyer’s relationship with the seller(s) who may become their key employees or business partners/management upon completion of the transaction