Warranty and Indemnity insurance is an increasingly prevalent aspect of M&A transactions.
Such policies, whether seller-side or buyer-side, indemnify the insured for loss resulting from a breach of warranty or tax deed/covenant in a Sale and Purchase Agreement (SPA).
A seller-side policy covers the seller for its own innocent misrepresentations; a buyer-side policy covers the buyer against the seller’s misrepresentations (innocent or otherwise). The buyer claims directly against the insurance policy and does not have to seek recourse against the seller.
The Edwin Coe insurance team advises on all of the component parts of Warranty & Indemnity Insurance and on the contentious matters that arise between insured and insurer.