Reps and Warranties

In the high-stakes world of mergers and acquisitions, even the most carefully negotiated deals can carry significant risks. Representations and Warranties Insurance from Titan Risk provides essential protection for both buyers and sellers, covering financial losses that may arise from inaccuracies or breaches of representations and warranties made during the transaction. Whether you’re navigating a complex acquisition or ensuring the integrity of your sale, our insurance solutions help you close deals with confidence, knowing that potential liabilities are covered.

At Titan Risk, we understand the intricacies of M&A transactions and the importance of securing your investment. Our Representations and Warranties Insurance solutions are tailored to meet the specific needs of your deal, offering comprehensive protection that mitigates risk and facilitates smoother negotiations. With Titan Risk, you can move forward with your transaction, assured that your interests are protected.

Highlights

Titan Risk provides comprehensive Representations and Warranties (Reps & Warranties) insurance solutions designed to protect buyers and sellers in mergers and acquisitions (M&A) transactions. Our tailored coverage helps mitigate financial risks associated with breaches of representations and warranties in purchase agreements. Here are the key features of our Reps & Warranties insurance:

  • Comprehensive Coverage for M&A Transactions - Our policies cover breaches of representations and warranties made in connection with M&A transactions, including financial statements, tax matters, intellectual property, contracts, and employee relations, ensuring broad protection for all parties involved.
  • Flexible Coverage Limits - We offer flexible coverage limits to suit deals of all sizes, from small acquisitions to large-scale mergers, allowing you to choose the appropriate level of protection based on the transaction's risk profile.
  • Buyer and Seller Coverage - Our Reps & Warranties insurance provides coverage for both buyers and sellers, protecting buyers from financial losses due to breaches and allowing sellers to reduce their indemnity obligations and secure a clean exit.
  • Defense Costs Included - Our policies include coverage for defense costs associated with claims of breach, ensuring that legal expenses do not erode the funds available for settlement or indemnification.
  • Efficient Claims Handling and Expert Legal Support - We offer a streamlined claims process with access to legal experts experienced in M&A transactions, ensuring quick and fair resolution to protect the financial interests of all parties.
  • Access to Leading Insurers - Our Reps & Warranties insurance is underwritten by top-rated, financially stable carriers, providing reliable coverage and peace of mind throughout the transaction process.
  • No Seller Indemnity Escrow Required - By using Reps & Warranties insurance, sellers can avoid holding back a portion of the sale proceeds in an indemnity escrow, allowing for a smoother transaction and faster access to funds.
  • Tax Indemnity Coverage - Our policies can include coverage for tax-related liabilities arising from pre-closing activities, ensuring additional protection for buyers from unexpected tax exposures.
  • Proactive Risk Management and Due Diligence Support - We provide proactive risk management services, including due diligence support and analysis of representations and warranties, to help identify and mitigate potential risks before closing.
  • Tailored Solutions for Various Industries - Our team has specialized knowledge across various sectors, enabling us to offer customized Reps & Warranties insurance solutions that address the unique risks and challenges specific to your industry.
  • Flexible Deductible Options and Premium Structures - We provide a range of deductible options and premium structures, allowing you to customize your policy according to your risk tolerance and budget.
  • Ongoing Education and Resources for M&A Professionals - Titan Risk offers continual education and resources, such as webinars, guides, and best practices, to keep M&A professionals informed about evolving risks and how to effectively manage them.

Learn More about Reps and Warranties Insurance

What is representations and warranties insurance?

Representations and warranties (reps and warranties) insurance provides protection in mergers and acquisitions (M&A) transactions by covering financial losses arising from breaches of the seller's representations and warranties made in the purchase agreement. This insurance helps both buyers and sellers mitigate the risks associated with potential inaccuracies or misrepresentations during the transaction.

Does my business need reps and warranties insurance?

If your business is involved in a merger, acquisition, or other significant transaction, reps and warranties insurance is highly recommended. It provides peace of mind by protecting against unforeseen liabilities that may arise from breaches of representations and warranties, ensuring that both parties are financially protected and the transaction proceeds smoothly.

How do insurance companies determine my rates?

Rates for reps and warranties insurance are determined based on factors such as the size and complexity of the transaction, the industry in which the business operates, the scope of the representations and warranties being covered, the financial stability of the parties involved, and the results of the due diligence process. Transactions with higher perceived risks or more complex terms may have higher premiums.

What enhancements are available on a reps and warranties policy?

Enhancements to a reps and warranties insurance policy may include extended coverage for specific risks, such as tax liabilities, environmental issues, or intellectual property claims. Additional endorsements can also be added to cover known issues that were identified during the due diligence process, providing even broader protection for the transaction.

What are some claims examples for reps and warranties insurance?

Common claims under reps and warranties insurance include breaches of financial statements, inaccuracies in tax representations, undisclosed liabilities, misrepresented customer or supplier contracts, and environmental liabilities that were not fully disclosed during the transaction. These claims can lead to significant financial losses, but reps and warranties insurance provides the necessary protection to cover them.

How long does it take to receive a quote?

The time it takes to receive a reps and warranties insurance quote from Titan Risk depends on the complexity of the transaction and the specific details provided during the due diligence process. Typically, you can expect to receive a quote within a few business days after submitting the necessary information about the transaction and coverage needs.

Outside of Reps and Warranties insurance, what insurance products can I buy from Titan Risk?

Titan Risk offers a comprehensive range of commercial Property and Casualty (P&C) insurance products designed to protect your business from a variety of risks. Whether you need coverage for your property, liability protection, or specialized policies tailored to your industry, Titan Risk has you covered. 

Here’s a list of the key P&C insurance products you can purchase from Titan Risk:

  • General Liability Insurance
  • Commercial Property Insurance
  • Commercial Auto Insurance
  • Workers' Compensation Insurance
  • Professional Liability Insurance (Errors & Omissions)
  • Directors and Officers (D&O) Insurance
  • Employment Practices Liability Insurance (EPLI)
  • Cyber Liability Insurance
  • Commercial Umbrella Insurance
  • Inland Marine Insurance
  • Business Interruption Insurance
  • Crime Insurance
  • Product Liability Insurance
  • Reps and Warranties Insurance
  • Tenant Legal Liability Insurance