Warranty & Indemnity Insurance

Warranty and Indemnity insurance is becoming a mainstream risk solution for private company acquisitions.  Bruce Stevenson Insurance Brokers W&I Insurance solution helps you bridge a gap should you find yourself falling short of your objective post-completion.

Working closely with you, we create a bespoke solution and place transaction risk cover on a deal-specific basis.  Our extensive expertise and experience means we understand your transaction and can provide comprehensive coverage solutions.

Strategic Benefits

W&I Insurance enables buyers to:

  • Provide protection for breaches of warranties both in terms of value and certainty of payment
  • Extend the duration of warranties, affording buyers additional time to detect and report problems that may exist with the acquired business
  • Distinguish a bid in a competitive auction by negotiating more limited recourse from the sellers by supplementing the contractual recourse with insurance
  • Protect relationships with sellers who may become the buyers’ key employees or commercial business partners after the transaction
W&I Insurance enables sellers to:

  • Reduce the risk of contingent liabilities arising from future claims, allowing sellers to exit a business cleanly
  • Distribute all or most of the sale proceeds to investors or use proceeds to pay down existing debt: there is no need for an escrow account
  • Protect passive sellers who have not controlled or been actively involved in the management of the target business from unintentional nondisclosure or breaches of the SPA
  • Expedite a sale and potentially increase the purchase price by eliminating obstacles to closing, such as indemnity negotiations