W & I insurance and sell-side due diligence – managing exposure to risk

Warranty & indemnity (W&I) insurance is being increasingly used on corporate transactions. At a very high level it provides insurance to cover losses arising from a breach of warranty or tax indemnity claims contained in a sale and purchase agreement (SPA). Warranties and a tax indemnity though are only as useful as a seller’s ability to pay any sums due and/or willingness to accept a reasonable level exposure of risk in the SPA. A claim of £500,000 where a seller has £0 or is only willing to expose himself to that or a... For the full story register now for free or login below...
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