Warranty & Indemnity Insurance - Major Risks
Arthur J. Gallagher’s specialist transactional risk insurance for deals mitigate unexpected post-completion losses caused by warranty breaches in the sale and purchase agreement. However your deal is structured, we have the warranty and indemnity insurance solutions and expertise to help underpin positive outcomes.
Warranty and Indemnity insurance is rapidly moving from specialist to a mainstream risk solution. Giving you more confidence in the deal, warranty and indemnity insurance bridges the expectation gap should you find yourself falling short of your objective post-completion. There is significant capacity and underwriting appetite for warranty and indemnity insurance programmes.
Transactional 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 for a known fixed cost – the premium.
Working closely with you, we design, structure and place transaction risk cover on a deal specific basis. The policy term can be up to seven years with a single premium payable at inception.
Come and talk Arthur J. Gallagher for all your transactional risk, warranty and indemnity insurance needs.
Here’s how it adds that value:
- Reduces counter party risk
- Can extend the scope of warranties and tax deed
- Can extend survival periods of warranties and tax deed
- Reduces and/or eliminates escrow requirements
- Protects against unknown risks – those not flagged through the due diligence process
- Provides attractive bid differentiation in auctions.