OUR SERVICES
LIVA provides a range of M&A insurance services including W&I (R&W), Title, Tax, Environmental, Contingent Risk and IP insurances. We also offer insurance due diligence capabilities with local expertise (and local language capabilities) providing insight and value at every stage of the process.
Select a service:
Warranty & Indemnity Insurance (W&I)
Warranty and Indemnity insurance covers financial loss arising from a breach of warranty or claim under a tax indemnity in an SPA – also known as representation and warranty insurance.
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Insured: |
Buyer or Seller. The Seller will often instigate the process and the Buyer is most often the insured (95% of the time). |
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Policy Period: |
Up to 36 months for General Warranties and up to 10 years for Title, Capacity and Tax. |
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Cost: |
0.85% – 1.2% of the insured limit of liability for operational targets or 0.5% – 0.8% for renewable or real estate transactions. |
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Cover: |
Insurers cover financial loss (including defence costs) from breaches of warranties or a claim under the tax indemnity. The policy covers unknown risks or 'innocent misrepresentations' which lead to a breach of the warranties. |
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Required Documents: |
- Transaction Documents. - Due diligence covering the areas for which cover is sought. If this is not available, certain insurers are able to undertake elements of the review themselves. |