Representations & Warranties Policies: A Coverage Primer
June 13, 2019
Representation and Warranties policies (R&W policies) insure representations made by a Seller to a Buyer in a merger or acquisition transaction, including those concerning financial statements, taxes, compliance with laws, material contracts, employee-related issues, intellectual property, operations-related issues, litigation, fundamentals, and environmental issues. Becoming common since 2014, with more than 20 insurers currently offering R&W policies, they implicate a variety of coverage issues due to their uniqueness in both the insurance industry and in their reflection of the specific deals for which they are purchased.