Representations and Warranties Insurance
Representations and Warranties insurance is designed to protect all parties involved in merger or acquisition transactions. In such transactions, the selling party is required to provide the purchaser with representations and warranties regarding the target company. Any error or inaccuracy in the seller’s representations may result in transaction delays, legal claims, and financial losses.
Representations and Warranties insurance protects the purchaser against financial losses that may arise from inaccurate or breached representations, while allowing the seller to achieve a clean exit without the need to place funds in escrow for indemnification purposes. In addition, both parties benefit from a faster transaction closing while maintaining a sound and professional working relationship.
