Representations and Warranties Insurance

About Representations and Warranties Insurance

Sands Point Risk — Insurance Products — New York Metropolitan Area, New York, NY — Navigating with Confidence — Representations and Warranties Insurance

Sands Point Risk — Insurance Products — New York Metropolitan Area, New York, NY — Representations and Warranties Insurance

In the context of an M&A transaction, RWI transfers the risk of financial loss resulting from a breach of a representation or warranty to our panel of highly-rated insurers, reducing or eliminating the need for the seller to hold back a portion of the purchase price in escrow. By limiting post-sale exposure to potential claims, this insurance plays a crucial role in mitigating transactional risks and enhancing the competitiveness of the buyer’s bid to acquire the target company.

Submission Inbox: trsubmissions@sandspointrisk.com

RWI offers a number of benefits, including:

Distinguishes Buyer’s Bid in an Auction Process

Comprehensive Coverage

Comprehensive coverage for an unknown breach of representations and warranties and longer period of protection than sellers typically offer in a traditional purchase agreement.

Recoup Claims

Recoup claims from highly rated insurers represented by professional claims handlers rather than from seller or an escrow account;

Reduces Potential Friction in Management Relationships

When sellers roll over a portion of their investment or management stays on with the company post-closing, RWI reduces potential friction in management relationships where a post-closing claim may implicate the pre-closing conduct of the sellers or management.

RWI Coverage and Transaction Underwriting

Sands Point Risk — Insurance Products — New York Metropolitan Area, New York, NY — Tax Liability Insurance — About Insurance

Coverage Scope

Subject to standard terms, conditions and exclusions and our underwriting, we can provide fulsome coverage for breaches of market-standard representations and warranties (e.g., financial statements, intellectual property and compliance with law) as well as a pre-closing tax indemnity.

Broad M&A Transaction Expertise

Our underwriting team has collectively underwritten thousands of transactions involving strategic and private equity buyers acquiring companies spanning a wide variety of industry classes. This experience, combined with an efficient and commercial approach to analyzing deal-related risks, allows us to provide the broadest possible coverage for unknown risks.