W&I insurance is a highly adaptable product designed to cater for unforeseen liabilities arising from a breach of the warranties or claim under the tax indemnity in a sale and purchase agreement (SPA).
Most W&I policies list the buyer as the insured party, usually allowing the seller a clean exit at completion. However, sellers frequently begin the insurance process by structuring W&I insurance into the transaction. A seller can also take a policy for their own benefit if they have material SPA liability.
In its standard form W&I insurance will mirror the key provisions of the SPA. However, we will frequently build multiple enhancements into the policy, giving the buyer better protection than under the SPA.
With the recent growth in appetite for partial or fully synthetic W&I insurance (warranties set out in the policy rather than the SPA) this product is a very useful option in distressed M&A scenarios.
Please contact us if you require more details about W&I insurance.