Any deal, regardless of size or complexity, can run into trouble. To keep things moving, TMHCC offers transaction risk insurance to bridge the gap between the deal parties’ positions (typically between buyer and seller) and can even enhance them.
Warranty and indemnity insurance provides significant advantages to both parties, safeguarding against loss from breach of warranty or a misrepresentation on behalf of the seller. It can also provide a strategic tool for buyers to gain a competitive edge against other bidders.
Highlights
- Financial capacity of up to €70 million (£50 million / AUD$85 million / CHF Fr.70 million) per policy
- Primary or excess options
Best for
- Companies involved in a mergers and acquisitions transaction
Summary of coverage
Warranty and Indemnity (W&I) insurance programmes facilitate the sale and purchase process. Both buyer-side and seller-side policies are available and the policy is structured to meet the risk retention and recourse requirements of the deal parties.
W&I insurance provides a convenient solution to both buyers and sellers and presents significant advantages, such as:
- A commercially viable alternative to security traditionally sought through costlier and less satisfactory means (such as an escrow account, bank guarantee or letter of credit)
- A simpler and more effective method of seeking indemnity against a loss resulting from a breach of warranty or tax deed / covenant in a sale and purchase agreement
- A tool to mitigate the vendor's risk for liabilities arising from innocent misrepresentations made by the vendor
- Coverage, afforded to the buyer, for financial loss as a result of any misrepresentations (innocent or otherwise) made by the vendor
- A strategic tool to give the buyer a competitive edge against other bidders for the purchase or to make the vendor's offer more appealing, as the risk is transferred to a financially sound insurer
TRI Team Advantage
Our Financial Lines team includes a dedicated team of TRI specialists made up of underwriting, claims and legal professionals. The team's extensive experience and in-depth knowledge of worldwide transaction risk-related issues, coupled with our under ‘one roof’ strategy, ensure a high level of professionalism and a fast and efficient service. Being internationally focused means we can offer tailor-made policy wordings in many languages and for multiple jurisdictions.
Learn moreTRI Claims Team
Our claims professionals work closely with you and your advisors to develop a solution-oriented strategy and to achieve a fair and efficient resolution of any claim. We will also explain how the coverage afforded under a policy applies to each claim, in a timely and comprehensive manner.
Claims handlingYour team
Spain
Torre Diagonal Mar
Josep Pla 2, Planta 10
08019 Barcelona
Spain
This product is available globally
This product is available in most territories. For USA enquiries, please contact the US-based TRI Team:
USA TRI
Why choose Tokio Marine HCC?
Tokio Marine HCC is a leading specialty insurance group with offices in the United States, Mexico, the United Kingdom and Europe, transacting business in approximately 180 countries and underwriting more than 100 classes of specialty insurance.
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