Deal Secure

Deal Secure^sm , Starr’s Representation and Warranties Liability policy, can be drafted specifically to match the transaction and can be purchased by the either the buyer or seller to insure all or only specific representation and warranties included in the buy/sell agreement. This policy covers claims in which the buyer alleges that the seller has breached the covered warranties and representations that were made at the time of the sale.

For a buyer-insured, the policy covers claims in which the seller has breached representations and warranties made at the time of sale. The policy allows the buyer to recover the losses resulting from these breaches without having to locate the seller and pursue claims against the seller's assets. Portfolio of coverage includes Commercial and Financial Institutions, Public Companies, Private Companies and Not-for-Profit Organizations.

Product Capabilities

• Warranty and Indemnity Insurance provides cover for losses arising from breach of warranties and indemnities given in the context of an M&A transaction. There is frequently a gap in private company sales between the level of warranties that will be offered by a seller and the level of warranties that a buyer will accept and this can often to deadlock between the parties and their advisors. W&I insurance can facilitate such transactions and transfer certain risk from buyers and sellers to insurers. W&I policy can be purchased by a buyer or seller to protect against the loss or liability arising from an unknown or undisclosed matter and is normally put in place at the time of signing of a transaction.

"Seller side" policy

• A seller policy will protect the warrantors for any losses suffered in the event that a buyer brings a valid claim for breach of warranty or under an indemnity. Legal defense costs incurred in managing an insured claim are also covered under the policy.

“Buyer side” policy

• A buyer policy will effectively replace the buyer’s normal contractual recourse against seller protecting the buyer for any losses arising from a matter which would be breach of warranty or indemnity.

Capacity

• Up to $50,000,000 per coverage section, syndicated amongst various carriers.

For more information on how a Financial Lines solution can work for you, contact: Richard Vega or (646) 227-6623.