Warranty & Indemnity (W&I)
When companies take over other companies, there is a risk that the contractually agreed company value will subsequently not correspond to the truth. This can happen for various reasons - but is usually not intentional. Buyers and sellers alike can protect themselves against this risk with Warranty & Indemnity insurance. In this area, Obrist Helps works with the London-based, specialized Risque Finance Brokers (RFB).
Professional risk management advice requires detailed risk identification and assessment. In a qualified risk dialogue with you, we systematically determine your transaction risk and make a calculated decision on how to deal with the insurable risk.
- By shifting the risk of such risk-related losses from the seller to an insurer, buyers and sellers can limit or even eliminate liability.
- Sellers can self-insure to prevent sale proceeds from being tied up in escrow accounts. Buyers can ensure that warranties have real value even if the seller cannot pay a warranty claim that arises at some point in the future.
- W&I insurance is a highly specialized area of insurance that facilitates the smooth running of an M&A process. This is done by transferring certain potential risks of the transaction to an insurance policy.
In collaboration with Risque Finance Brokers, we help you develop a risk and insurance policy according to the specific risk profile of your corporate transaction.
