Reps and Warranty Insurance
Reps & Warranties insurance covers losses sustained by the insured (either buyer or seller) related to breaches of the seller’s R&Ws made in the purchase and sale agreement (“PSA”). The policy does not cover known or disclosed matters and matters disclosed for purposes of one rep are deemed to be disclosed for purposes of all other reps. Nor does it cover known liabilities and/or specific indemnities. However, underwriters may consider providing coverage for individual contingent liabilities through a separate policy.