Warranty and indemnity

W&I insurance take-up has increased materially in the last 5 years, moving into the mainstream thinking of and use by M&A lawyers, advisers and their clients.

Warranty and indemnity

Until recent years the market was held back in part by the fear of the lack of demonstrable claims experience with M&A lawyers and their clients unsure about how useful the product was and how Insurers would respond to claim situations. That has now changed and brokers are able to point their clients to a wide and varied experience of Insurers paying meaningful claims in this area, while applying sensible and appropriate coverage responses and claim strategies.

M&A law firms advising on either side of a sufficiently valued deal are now obliged to advise their clients on the availability and potential benefits of a W&I policy. This trend of increasing use on M&A deals will only continue. As the insurance market has deepened its offering, the generic product has become more user friendly and increasingly sits easily and back to back with the underlying SPA. In turn, Insurers are pushing the boundaries of the type of M&A related risk they are prepared to take on, including the writing of bespoke Tax and Environmental Liability tax policies as the search for new business continues.

At Beale & Co, we offer a pragmatic and cost effective service comprising corporate due diligence to assist Insurers in their front end pre bind investigations as well as back end claims response and coverage work.

The W&I team is overseen by 3 Partners, Stephen Reilly (Claims) who has both in house and private practice experience of handling W&I claims, James Hutchinson (Corporate Law) and Michael Salau (Environmental Law).

Our Warranty and indemnity Experience

Claim for breach of warranty - financial services group

Advising insurers on Buyer side policy significant claim for breach of warranty arising out of the sale of a financial services group and the alleged non-disclosure of overseas regulatory compliance issues.

£10m claim for breach of warranty

Advising insurers on a Buyer side policy £10m claim for breach of warranty arising out of the sale of a manufacturing company and the alleged non-disclosure of potential future litigation.

Warranty claim relating to a material asset warranty

Advising Insurers on a Buyer side policy £1m breach of warranty claim relating to a material asset warranty and the future working life of a major piece of manufacturing equipment and related accounts depreciation