Representations & Warranties Insurance
Protecting your transaction
Representations and Warranties Insurance (R&W) protects buyers and sellers in mergers and acquisitions from financial losses arising from breaches of representations made in a purchase agreement. It ensures that the parties can close a transaction with confidence.
At Fairpoint, we help clients structure and place R&W policies that align with deal timelines, indemnification structures, and transaction complexity
Why it matters
In today’s competitive M&A environment, clean exits and faster closings are key. R&W insurance helps reduce the need for escrow, limits seller liability, and provides buyers with direct recourse to an insurer in the event of a breach.
This coverage has become an essential tool in transactions involving private equity, venture-backed companies, and strategic acquisitions
What’s covered
R&W insurance can protect against financial losses stemming from:
Breach of representations and warranties in the purchase agreement
Inaccurate financial statements or undisclosed liabilities
Tax, compliance, or regulatory issues
Our approach
We collaborate closely with your legal and financial teams to ensure the policy is aligned with deal structure and diligence findings. Our process includes:
Understanding your transaction and key risk areas
Engaging leading R&W underwriters early in the deal process
Negotiating favorable terms, pricing, and coverage enhancements
Coordinating policy execution in line with closing timelines