Warranty & Indemnity (W&I) covers a breach of warranties or a claim under the tax indemnity in a purchase agreement.
- It typically covers the full suite of warranties and a general tax indemnity, subject to insurance policy exclusions.
- W&I Insurance usually has the buyer as the policyholder, however seller policies can also be arranged.
- Policy can commence when a deal signs and are multiyear in line with the exposures being covered; typically 2-7 years.
- The premium is a one-off cost payable after completion of the transaction and depends on the deal dynamics
(industry sector, jurisdiction, etc).
- Either the buyer or seller can pay for the policy regardless of who is the policyholder.
- Quotations can be obtained within 48 hours and policies put in place within 10 days.