LIVA M&A Insurance Services

Warranty & Indemnity Insurance (W&I)

Warranty and Indemnity insurance covers financial loss arising from a breach of warranty or claim under a tax indemnity in an SPA – also known as representation and warranty insurance.


Buyer or Seller.

The Seller will often instigate the process and the Buyer is most often the insured (95% of the time).

Policy Period:

Up to 36 months for General Warranties and up to 10 years for Title, Capacity and Tax.


0.85% – 1.2% of the insured limit of liability for operational targets or 0.5% – 0.8% for renewable or real estate transactions.


Insurers cover financial loss (including defence costs) from breaches of warranties or a claim under the tax indemnity. The policy covers unknown risks or ‘innocent misrepresentations’ which lead to a breach of the warranties.

Required Documents:

- Transaction Documents.

- Due diligence covering the areas for which cover is sought. If this is not available, certain insurers are able to undertake elements of the review themselves.