How Transactional Liability Insurance Is Facilitating Dealmaking By Private Equity?

With record high private equity deal activity in 2021, several deal trends have emerged – warranty and indemnity insurance being one such trend in private equity driven M&A deals. This is due to the solutions offered by the product for various deal situations. A warranty and indemnity (W&I) insurance is an insurance product which provides insurance coverage to  parties in an M&A deal from the liability of indemnity claims under the purchase agreement. These indemnity claims may arise out of unknown matters post-closing and typically pertain to the business of the target company as well as the securities or assets bought by the acquiring company.

Typical W&I insurance driven deals