2021 · Insight

Market Trends in Warranty & Indemnity Insurance and their Impact on M&A Contract Practice

Warranty and indemnity (W&I) insurance policies have been an integral part of M&A transaction practice for many years. In this context, risks of the target company that are the subject of warranties and indemnities of the sellers are covered by special transaction-related W&I insurance. The economic result is that the insurance company’s liability fully or partially replaces the seller’s own liability. However, from the buyer’s point of view, the full exclusion of the seller’s own liability is not unproblematic.

in: FYB Financial Yearbook 2022, 125-132
Authors: Philipp von Braunschweig