Page of | Results - of

The Crucial Role of Reps & Warranties Insurance

Representations & warranties insurance (R&W insurance) is a crucial component of any mergers and acquisitions (M&A) transaction. An R&W insurance policy can protect buyers from financial losses in the event of a breach of representation made by the seller in a purchase agreement, while allowing sellers to exit the transaction without traditional escrows of purchase price and hanging indemnity obligations. 

Pingpong image

The More Rewarding Way to Secure R&W Insurance

As the leading national specialty broker, our team has long-standing relationships with every R&W insurance carrier and the most Informed R&W insurance advisors. We have extensive knowledge of the market and current trends, enabling us to secure optimal terms from insurance carriers at the outset. When you partner with Alliant, we become an integral part of your deal team, working to identify and resolve potential challenges before they can jeopardize a deal.

Pingpong image

Our Reps & Warranties Insurance Expertise

Our team of expert specialty R&W insurance brokers brings critical insights and the best market opportunities to the table. With decades of legal, corporate and financial experience, we can help you build effective R&W insurance policies to protect against unintended contractual misrepresentations made during negotiations of M&A transactions. Alliant helps our clients be better prepared if claims arise.

Pingpong image

Representations & Warranties Insurance FAQ

An R&W insurance policy is a contractual agreement between the buyer (or seller) and an insurance company whereby the insurance company will indemnify for losses resulting from a breach of reps and warranties and claims under indemnification provisions (including the tax indemnity/covenant), contained in purchase agreements. Each R&W insurance policy is tailored to meet the specific needs of a transaction. It is a non-renewable, single-premium product with the premium being paid upon either signing or completion of the transaction.

R&W insurance, whether purchased by a buyer or a seller, is a proven tool that allows deal professionals to bridge gaps between the parties. It shields buyers from unknown risks that can prevent a deal from closing or leave buyers with unwanted liabilities, particularly in instances where the amount or quality of recourse that the seller is willing, or able, to offer is insufficient to the buyer.

R&W insurance can give both parties more confidence in an M&A transaction, leading to a faster agreement.

With the backing of an R&W insurance policy, sellers feel less vulnerable in the representations and warranties they offer, allowing for a more fulsome scope and streamlined negotiations. Traditional indemnities for breaches of these seller representations and the need for an escrow or holdback can also be reduced or eliminated entirely, allowing sale proceeds to be distributed right away.