Warranty & Indemnity Insurance
In any transaction, both buyers and sellers face a range of potential exposures during the deal negotiation and after it has been completed. Regardless of the thoroughness of the disclosure process and the due diligence undertaken, there is always an element of the unknown.
Warranty & Indemnity Insurance offers greater certainty and peace of mind. It can be purchased by a buyer or a seller and protects against the loss or liability arising from an unknown or undisclosed matter.
We aim for the policy to provide the closest back-to-back coverage position with the underlying warranties as is possible within the context of the transaction.
- Duration: typically two years for general warranties, and seven years for tax and fundamental warranties
- Limits: up to £40,000,000 (and often more on a case by case basis)
- Excess: typically ranges between 0.25% and 1% of the total enterprise value of the business (or nil for real estate transactions) depending on upon factors such as the size, nature and jurisdictional scope of the underlying business