R&W Insurance
Reps and Warranties Insurance (RWI) was created to mitigate transactional risks, in particular as a cost-effective means to shift financial liability from contractual breaches away from buyers and sellers to insurers. RWI can also help avoid costly escrows or contingent liabilities that survive post-closing.
Typically, either buyers or sellers can obtain coverage through a Buyers-side policy or a Sellers-side policy.
Tax and other contingent liabilities can also be considered. In particular, demand in the commercial real estate space is driven by protection against re-characterization of a REIT’s tax status.
For additional information, please contact us.