Capability Guide
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Overview
Comprehensive and tailored protection against financial loss resulting from inaccuracies in the warranties and indemnities relating to an acquired company or business.
Ease of reimbursements
Buyers can recover losses directly from the insurer without needing to locate and purse a seller and its assets.
Comprehensive Cover
Coverage for a complete set of warranties and indemnities made by a seller, including title, commercial and tax matters.
Exceptional claims handling
Access to our outstanding team of claims professionals who are experienced and specialised in litigation relating to acquisitions, ensuring that your claim will be resolved in a professional and efficient manner.
Large capacity
Highly customised coverage for all transaction values, from domestic to large multi-jurisdictional acquisitions.
Who is it for?
- Businesses involved in corporate acquisitions or disposals seeking protection from financial loss resulting from inaccuracies in warranties and indemnities given by a seller as part of a transaction
- The named insured under a Warranty and Indemnity policy can be the seller or buyer of a business, or other interested parties, including a new company, special purpose vehicle or a guarantor
What is covered?
A buyer-side policy allows the buyer to recover losses arising from inaccuracies in the warranties and indemnities directly from AIG without first pursuing recovery from the seller.
A seller-side policy reimburses the seller for losses arising from warranty and indemnity claims by the buyer
Each policy is tailored to meet the specific needs of the transaction, with coverage designed to:
- Work back-to-back with the recourse and risk allocation agreed between the buyer and seller in the acquisition agreement
- Mirror the minimum claim provisions (de minimis and retention thresholds) and other limitation language in the acquisition agreement
- Match the warranty survival period under the acquisition agreement (including any extended period for tax) – extendable if required
- Cover first and third party claims and associated defence costs. Cover on a buyer-side policy will also respond to fraud by the seller
The AIG advantage
- Bespoke products designed for M&A transactions, based on more than 40 years’ experience working in Asia and over 95 years serving customers around the world
- Local expertise backed by a worldwide network of highly-skilled insurance professionals, helping to make complex deals a reality
- Financial strength and stability – large capacities available, reducing the need for multiple insurers
- Access to our highly-skilled and specialised team of claims professionals who will process your claim efficiently and professionally