Real Estate Warranty & Indemnity - Major Risks
Arthur J. Gallagher’s specialist transaction risk insurance for corporate real estate deals mitigate unexpected post-completion losses caused by warranty breaches in the sale purchase agreement. However your deal is structured, we have the real estate warranty and indemnity insurance solutions and expertise to help underpin positive outcomes.
Warranty and Indemnity insurance is rapidly moving from specialist to mainstream risk solution and this is particularly true for major property transactions structured on a share purchase basis. Giving you more confidence in the deal, warranty and indemnity insurance bridges the expectation gap should you find yourself falling short of your objectives post-completion. There is significant capacity and underwriting appetite for real estate warranty and indemnity insurance programmes and insurers perceive real estate applications to be highly attractive.
At Arthur J. Gallagher, we are driving the development and growth of real estate transaction risk management, backed by a range of thorough due diligence insurance solutions. Integration and seasoned experience drives the way we work. Called Match, it’s a consultative process that hinges on our thorough understanding of your business. Quality analytics, clear thinking, plain English, exceptional listening skills and proven real estate warranty and indemnity insurance expertise drive all that we do.
Real estate transaction risk management adds significant value to the deal, helping provide a clean exit for the insured by maximising purchase price and minimising liability. Potential future liabilities are transferred under the contract of insurance in exchange for a known fixed cost - the premium.
Working closely with you, we design, structure and place real estate transaction risk cover on a deal-specific basis. We typically provide ‘back to back’ coverage with the contractual warranties and the tax deed provided by the vendor. The policy term can be up to seven years with a single premium payable at inception.
The only global broker to hold an internationally recognised ethical award, performance, integrity, expertise and service sit at the heart of our approach. We have a proven, global track record delivering superior real estate warranty and indemnity insurance solutions that underpin the deal and provide transactional peace of mind you can rely on.
Come and talk Arthur J. Gallagher for all your transactional risk insurance and warranty and indemnity insurance needs.
Here’s how it adds that value:
- Reduces counter party risk
- Can extend the survival period of warranties and tax deed
- Improves cash flow
- Reduces and / or eliminates escrow requirements
- Protects against unknown risks – those not flagged through the due diligence process
- Helps support to joint venture investment structures
- Provides attractive bid differentiation in auctions
- Mitigates solvency concerns regarding distressed sellers and acts as an effective contingency for up to 7 years.