Click here for a PDF version of the ABI Warranty & Indemnity information sheet
What is W&I Insurance?
W&I insurance is available to either the purchaser or seller of a company. The policy (subject to its terms) provides protection against losses arising from breaches of the warranties or indemnities contained within a sale & purchase agreement. Additionally, W&I insurance can cover liability arising under an associated tax deed, and provide protection in the event that reserves established for the payment of taxes due through the effective date of the transaction are inadequate.
W&I insurance has been available within the insurance market as a specialised coverage for many years. Cover can be provided to insure a party's liability or loss in respect of the breach of a large range of warranties, including those related to ownership, intellectual property, audited accounts, management accounts, contracts, employee matters, insurance arrangements, compliance, litigation, or other matters that may have been negotiated as a part of the sale agreement.
What is our Solution?
ACE Bermuda International (ABI) is proud to have been appointed as the centre of excellence for underwriting this class of business for UK clients within the ACE Group. We can offer clients:
- The benefit of more than 25 years of extensive underwriting experience
- Expertise of a leading M&A lawyer with over 10 years experience in the field
- Primary or excess capability
- Ability to provide indicative premiums quickly*
- Financial strength rating of A+ from both S&P and AM Best as well as an ACE Limited S&P Enterprise Risk Management (ERM) rating of ‘strong’
- Up to £18.5M of capacity per transaction
*ABI will require a full presentation of any proposed transaction prior to finalising acceptability, capacity and pricing.
ABI offers this unique combination of expertise, capacity and financial strength. In the current environment, our financial strength and our ERM rating is especially relevant for a ‘long tail’ class of business, such as W&I, where policy periods can be up to 6 years or more.
We can provide coverage for either a buyer or seller and specialise in both:
- Large, complex acquisitions where we can tailor our standard policy form to meet a client's individual requirements;
- Smaller transactions where clients are looking to combine a reasonably priced insurance solution with an unobtrusive underwriting process.
Additional information, including illustrative case studies, can be made available to brokers, prospective clients and/or advisors. For further information please ask your broker to contact the ABI London Branch Office.
Note: ACE Bermuda International Insurance (Ireland) Limited is regulated by the Irish Financial Regulator.