Representations & Warranties Insurance
Mergers and acquisitions are rising; however, so is post-acquisition litigation. Companies involved in this venture face a multitude of backlash if the deal goes awry. Reps & Warranties insurance protects companies against the growing risk of costly litigation after a merger or acquisition.
Founder Shield Partners
Who Needs Representations & Warranties Insurance?
Representations & warranties (R&W) insurance – also known as warranty & indemnity (W&I) insurance – is a specialized coverage used in mergers and acquisitions (M&A). It protects buyers and sellers from financial losses and litigation resulting from inaccuracies or breaches in the representations and warranties made in the transaction agreement. These representations cover various aspects of the business, such as its financials, assets, legal standing, and operations.
Buyers
Buyers
An R&W policy can make buyers’ bids seem more attractive, extend the time for duration, enhance the amount of protection, and improve the buyer’s likelihood of winning a case under this coverage.
Sellers
Sellers
R&W insurance can improve the condition of the deal, provide a cleaner exit, reduce or eliminate the traditional seller’s indemnity for breach of contract, and offer more extensive coverage without many qualifiers.
Both Parties
Both Parties
Using an R&W insurance policy helps simplify and speed up the negotiation of the acquisition agreement. Plus, it offers more coverage than traditional acquisition agreements.
Buyers
Buyers
An R&W policy can make buyers’ bids seem more attractive, extend the time for duration, enhance the amount of protection, and improve the buyer’s likelihood of winning a case under this coverage.
Sellers
Sellers
R&W insurance can improve the condition of the deal, provide a cleaner exit, reduce or eliminate the traditional seller’s indemnity for breach of contract, and offer more extensive coverage without many qualifiers.
Both Parties
Both Parties
Using an R&W insurance policy helps simplify and speed up the negotiation of the acquisition agreement. Plus, it offers more coverage than traditional acquisition agreements.
Partnering with Founder Shield
We’re risk management partner for high-growth companies across emerging markets, striving to create the most seamless, intuitive, and responsive insurance-purchasing experience powered by poprietary technology and insurance products.
VC backed companies served
Ranked broker in the US
NPS Score (Industry Average = 34)
Why Do You Need R&W Insurance?
Mergers and acquisitions (M&As) are on the rise. Each year, more and more companies join forces to form healthier and more sustainable organizations. Although this business strategy is desirable and successful, it also comes with a hefty amount of risk. Consider what would happen if a seller’s representation were inaccurate, causing a buyer financial loss. Or if the buyer filed a lawsuit against the seller, alleging a breach in the terms of agreement.
Risk Transfer
Transfers M&A fears and risks from your company to the insurer
Close Deals
Fewer contingent liabilities help sellers land a cleaner exit
Indemnifcation
Covers the indemnification of specific breaches such as
Service and Capabilities
Customized Coverage
Tailored policies to address the unique risks of the fintech sector, ensuring comprehensive protection.
Expert Guidance
Access to experts with deep knowledge of fintech risks, regulatory environments, and best practices.
Quick Coverage, Easy Access
Submit an application in under 15 minutes and manage all your policies & claims on our simple online platform.
Full Market Access
Access to a network of 200+ carriers to ensure comprehensive protection across all potential risks unique to your company.
Client Testimonials
Great service – proactive, responsive, go beyond what I have expected from previous providers. The team do a wonderful job.
Fast and attentive service. Always there to help with my questions and make sure we get the right coverage. Highly recommend!
Make insurances possible that we probably could not get from a traditional provider/broker. Only know of a few alternatives to Founder Shield, for startups, and the ones I know were not responsive to my requests.
Schedule Time with an M&A Advisor
Warranty Review
Analyze warranties within your coverage to ensure they’re comprehensive and address typical liabilities, minimizing exposure to unexpected post-transaction risks.
Transaction Benchmarking
We’ll compare your current coverage costs against industry standards to help optimize premiums and reduce unnecessary expenses.
Risk Roadmap
Receive a tailored risk management plan to address specific liabilities, keeping your company protected as it grows post-transaction.
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