Policy snapshot
W&I insurance covers losses arising from breaches of warranties or representations in mergers and acquisitions (M&A) transactions.
What is Warranties and Indemnities (W&I) Insurance?
W&I Insurance protects M&A parties from financial loss due to inaccuracies in representations and warranties. It's used to facilitate smoother deal closure.
What can it cover?
- The policy indemnifies the insured for losses arising from unknown breaches of warranties or representations made in a purchase agreement. It may cover legal defence costs and is often used in cross-border or high-value transactions.
Who should consider it?
- PE/VC investors, acquirers, M&A advisors, Sellers seeking clean exits from companies, Indian startups involved in buyouts or strategic exits
Key features to understand
- {"heading": "Key Features", "bullets": ["Covers both buyer-side and seller-side warranties", "Backstops indemnities agreed during deal negotiations", "Provides clean exits in transactions", "Helps bridge warranty negotiation gaps"]}
What deserves attention before you buy?
Coverage, exclusions, sub-limits, deductibles, waiting periods, warranties and underwriting can vary between insurers and policy versions. The policy wording and schedule remain the definitive contract. Novo can help you review the relevant terms for your requirement.
Read the wording, not just the brochure
The schedule and policy wording determine the actual contract.
Compare meaningful differences
Look at exclusions, limits, deductibles, conditions and claim requirements—not premium alone.
Think beyond purchase
Servicing and claims-related support can matter as much as placement.