Representations and Warranties Liability Insurance
Whether the insured is the buyer or seller in the purchase, sale, merger, or acquisition of a company or its assets, Chubb's Representations and Warranties Liability Insurance helps guard against the havoc brought by unanticipated liabilities due to the breach of an insured representation or warranty.
In these transactions, the seller makes contractual representations and warranties about the asset being transferred. These representations are statements of past and existing facts, and warranties are promises that existing or future facts are or will be true. Representations and warranties may relate to financial information, taxes, contracts, intellectual property, benefits, and so on, covering virtually every aspect of the business being sold. Given the broad nature of these representations and warranties, there is always a degree of uncertainty regarding unknown liabilities. Representations and Warranties Liability Insurance can quiet those uncertainties.
Whichever side of the transaction you are on -- buyer or seller -- unanticipated liabilities can impact the bottom line significantly and even negate any financial benefit derived from the transaction. Representations and Warranties Liability Insurance is the comprehensive way for buyers and sellers to manage financial risk.
Please contact your agent or broker, or email csi-info@chubb.com with questions.
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