Mergers and acquisitions (M&A) transactions can have unforeseen complications. Sellers can face liability when a representation or warranty about the company being sold is proven to be inaccurate. Significant losses can follow as the seller faces a claim. But it doesn’t have to be this way. Breckenridge Insurance has a solution. 

Having Transaction Liability insurance, which typically includes representations and warranties insurance (R&W), takes care of the seller in this scenario. The insured can make a claim against the policy rather than the other party.  

Transaction liability is available to buyers and sellers offering cover for representations and warranties, contingent tax, and other M&A liabilities. Both parties in a M&A agreement can take advantage of this safeguard, which could enhance bids by potential buyers and bridge differing expectations. 

Key features: 

  • Bespoke cover 
  • Breach of warranties 
  • Clean exit 
  • Bid enhancement
  • Limited seller security 

Breckenridge Insurance has several markets available for this coverage included within our Management Liability area. Learn more about what we can do to protect your insureds’ M&A transactions here

Transaction Liability Coverage for All Sides of a M&A Transaction was last modified: October 18th, 2022 by Breckenridge Insurance Services