Warranty & Indemnity Insurance
Warranty & Indemnity Insurance allows buyers and sellers to address potential gaps in expectations on the level of recourse for breaches of seller warranties in a Sale and Purchase Agreement. A buyer may replace the indemnity expected from the seller with insurance, or purchase cover that extends the period during which the buyer can make a claim and to a higher limit, above that offered by the seller (if any).
Sellers may also use this product to replace certain SPA obligations, allowing them to return sale proceeds to investors rather than tie up money in escrow, or retain the trailing risk of having to meet a warranty claim.
Overview of Uses of W&I Insurance
W&I Insurance is playing an increasingly larger role in M&A deals in the region − from differentiating buyers’ bids to providing sellers with a clean exit. There are a number of strategic uses for the solution for both buyers and sellers:
Learn more about Warranty & Indemnity (W&I) Insurance Trends in Asia: Year in Review.