Warranty & Indemnity Insurance in Distressed Sales

In an M&A transaction, where dealing with a seller undergoing financial distress, the buyer may have concerns regarding its ability to obtain sufficient recourse against the distressed seller for a breach of a warranty or an indemnity claim under the acquisition agreement (Agreement). Under such circumstances, Warranty &Indemnity (W&I) insurance can serve as an alternative avenue of recourse and thereby provide the buyer with greater comfort and security.

From a distressed seller’s perspective, W&I insurance can facilitate the transaction and enable the seller to optimize value from the sale, as the buyer will have reassurance that it might not otherwise have with regard to the strength and reliability of its contractual protections under the Agreement.

Download this client advisory to find out more about considerations, and risk transfer solutions in sales involving distressed sellers.

 

Disclaimer: Marsh India Insurance Brokers Pvt Ltd is a subsidiary of Marsh McLennan.

Marsh India Insurance Brokers Pvt. Ltd. having corporate and the registered office at 1201-02, Tower 2, One World Center, Plot-841, Jupiter Textile Compound Mills, Senapati Bapat Marg, Elphinstone Road (W), Mumbai 400 013 is registered as a composite broker with Insurance and Regulatory Development Authority of India (IRDAI). Its license no. is 120 and is valid from 03/03/2021 to 02/03/2024. CIN: U66010MH2002PTC138276.