Representations & Warranties (R&W) Insurance
Representations & Warranties (R&W) Insurance protects buyers, sellers, and investors against financial losses arising from breaches of representations or warranties made during mergers, acquisitions, investments, or other corporate transactions.
Coverage is designed to help manage transactional risk by protecting against unknown issues or inaccuracies discovered after a deal has closed.
Coverage typically responds to financial loss resulting from breaches involving financial statements, contracts, tax matters, regulatory compliance, operations, intellectual property, or other representations made within transaction agreements.
Coverage may also include protection for:
Transaction-related financial loss: Coverage for losses arising from inaccuracies, omissions, or breaches identified after closing.
Buyer and seller protection: Helps reduce post-transaction disputes and supports cleaner allocation of transactional risk between parties.
Legal defense and claims costs: Protection for legal expenses, investigations, settlements, and covered damages associated with breach-related claims.
Cross-border and multinational transactions: Coverage for international acquisitions, investments, joint ventures, or transactions involving multiple jurisdictions and regulatory environments.
Tax, compliance, and operational exposures: Protection related to regulatory issues, undisclosed liabilities, contractual obligations, or operational risks discovered following a transaction.
For multinational organizations, coverage is often coordinated through a Controlled Master Program (CMP), such as the WMB Global Risks Global Master Program, with locally admitted policies where required to support coordinated coverage and regulatory compliance across jurisdictions.
Representations & Warranties Insurance is designed to help organizations reduce transactional uncertainty, protect investments, and support smoother execution of complex corporate transactions.