Transaction Liability Insurance - Representation and Warranty Insurance in Cross-Border Transactions


In recent years, representation and warranty insurance has gained popularity as a tool to decrease transaction liability exposure in M&A transactions. These policies can be particularly useful in the context of cross-border transactions, for both financial and strategic parties, to facilitate middle-market transactions involving foreign buyers or sellers of domestic U.S.-based businesses. The product is also beginning to gain traction in transactions outside of the United States.

As the M&A market heated up in 2014, particularly in middle-market transactions, so did the market for representation and warranty insurance (“RWI”), a transaction liability insurance product which has become an increasingly utilized tool to assist M&A professionals close their deals.

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