Representations and warranties insurance

Risk allocation is central to every M&A transaction. Private equity funds, strategic buyers and sellers increasingly turn to representations and warranties insurance (RWI) as an efficient solution to manage those risks. As a result, established carriers and managing general underwriters (MGUs), as well as new and emerging markets, recently combined to issue a record number of RWI policies. Industry data suggests that insureds will present a claim on one in five of those policies, involving transactions across a wide range of business sectors.

Porter Wright’s Representations and Warranties Insurance Practice Group stands ready to assist carriers and MGUs as they analyze, adjust, negotiate, mediate and, if necessary, litigate or arbitrate RWI claims. Our team has experience working with industry leaders on such claims, including those alleging breaches of representations involving accounts receivable, absence of changes, compliance with laws, financial statements, internal controls, material contracts and undisclosed liabilities. We regularly work with financial and other consultants to evaluate these claims. Our RWI attorneys efficiently identify important issues and effectively analyze complex policy and claims questions. If the claim leads to a dispute, we rely on our extensive (re)insurance litigation and arbitration experience to navigate a resolution consistent with our client’s intentions and expectations.