Representations and warranties (R&W) insurance is a key tool to protect parties involved in mergers and acquisitions. The many benefits of R&W insurance include:
- R&W insurance eliminates the need for an escrow account, which can make a buyer’s bid more attractive for a seller.
- Knowing that R&W insurance should pay for most indemnity makes it easier for a buyer and seller to negotiate acceptable agreement terms.
- If the seller joins the merged/acquired entity’s management team, R&W insurance eliminates the risk that the buyer could sue the new entity due to the seller’s breach of the agreement.
9th Street Insurance partners with industry-leading professionals in the transaction liability market to deliver comprehensive coverage that facilitates a smooth transaction at the most competitive premiums.
