Not To Be Forgotten, The Interplay of Other Insurance in Reps and Warranties Claims

Representations and Warranties Insurance (RWI) essentially takes the place of traditional indemnification provided by sellers to buyers and can improve the overall negotiation process in corporate transactions. RWI policies, however, for cost and other reasons, often have sizable, self-insured retentions calculated as a small percentage of the overall acquisition price. As such, some claims submitted to RWI insurers are settled at levels within the retention and do not implicate coverage.

Regardless of the retention, an insured may also have access to other types of insurance covering the acquired company that can supplement any RWI coverage and often may be subject to lower retentions and other favorable terms that can protect an insured from financial loss as well.

Read our editorial, focused on the interplay of other insurance in Reps & Warranties claims. To learn more or to answer any questions, contact Vanbridge’s Head of Claims, John Patterson, or our Transactional Risk Solutions leader, Greylen Erlacher Mardy.