Warranty & Indemnity Insurance

Warranty and Indemnity (W&I) policies are used as a strategic risk transfer tool to give protection to either the buyer or seller against financial losses suffered as a result of an unexpected breach of warranty or claim under a tax indemnity. Tailored protection is provided by the insurance market to the insured for unknown issues such as financial statement errors or undisclosed regulatory matters.

W&I insurance can be purchased by either a buyer or a seller however the buy-side policy is largely used to afford the seller a clean exit and provide the buyer a direct means of recourse as an alternative to pursuing the existing warrantors in the event of a claim. Buy-side policies are often initiated by a seller (or management team, private equity firm, infrastructure fund, bank, real estate firm or corporate) as part of an auction process and the policy is then ‘stapled’ to the transaction.


The BMS Private Equity, Mergers & Acquisitions and Tax team will work with you to ensure that the W&I process works as efficiently as possible in tandem with the M&A transaction timeline. The policy is designed to support rather than replace the underlying transaction and insurers will require a robust due diligence and disclosure process to be carried out.


The premium is calculated as a rate-on-line of the policy limit being purchased. There are various factors which will affect this rate such as the nature and jurisdiction of the target business being bought, the governing law of the transaction, the scope of the warranties and whether any specific enhancements to the policy are required. These variables will be discussed at the outset of the transaction and the one-off premium will be payable once completion of the transaction has occurred.

The benefits of using W&I

Buyer Benefits

  • Mitigates risk of seller covenant strength
  • Certainty when investing in a new asset class / geography
  • Protects ongoing business relationships with management
  • Extends out insufficient SPA limitation periods
  • Bid differentiation in competitive auction process
  • Satisfy corporate governance requirements
  • Proceeds of claims can be assigned to a lender

Seller Benefits

  • Clean exit / nil recourse
  • Immediately realise sales proceeds
  • Balance sheet protection post completion
  • Prevent price chips or holdbacks

Mutual Benefits

  • Removes significant obstacle
  • Mitigates difficult negotiations
  • Bridges gaps on uncertain exposures
  • Affirmative cover for certain known risks
  • Synthetic packages may be utilised


W&I insurance policies will usually exclude matters that are known to the insured including matters disclosed by the seller or within the buyer’s actual knowledge. Forward looking statements, certain fines and penalties, pension underfunding and post completion purchase price adjustments are often excluded. There may also be deal specific exclusions depending on the underlying transaction i.e. target industry, jurisdiction or a specific risk that has been identified in the due diligence process.

Pawar Tan

Tan Pawar

Head of Private Equity and M&A

T: +44 (0)20-7480-0264
M: +44 (0)7341-133-007
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Andrews Dean

Dean Andrews

Head of Tax Liability Insurance

T: +44 (0)20-7480-0308
M: +44 (0)7876-815-643
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Wallace Sophie

Sophie Wallace

Divisional Director

T: +44 (0)20-7480-0378
M: +44 (0)7824-605-613
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Leitch Harry

Harry Leitch

Director, Head of Deal Origination

T: +44 (0)20-7480-0346
M: +44 (0)7770-990-368
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Kemp Simon

Simon Kemp

Group General Counsel

T: +44 (0)20-7480-7288
M: +44 (0)7825-844-988
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Marcus Christie


T: +44 (0)20-7374-5937
M: +44 (0)7826-532-908
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Simon stephan

Stephan Simon

Head of W&I Insurance – UK

M: +44(0)7785-720-944
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Kanwar Chandini

Chandini Kanwar

Associate Director

T: +44 (0)20 7374 5990
M: +44 (0)7825 421 394
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One America Square
London EC3N 2LS
United Kingdom

T: +44 (0)20-7480-7288

Stone Jason

Jason Stone

Managing Director, Canada

M: +1 416-845-4572
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Allen logan

Logan Allen


M: +1 416-722-8171
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1 University Ave,
Toronto, ON M5J 2P1

Lee Sandra

Sandra Lee

CEO & Head of PEMAT, Asia

T: +852 3579 5485
M: +852 9255 7088
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De Lange Martijn

Martijn de Lange

Managing Director

T: +852 3579 5486
M: +852 9772 9951
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Wong Aris

Aris Wong

Managing Director

M: +65 8321 6236
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Sagar Mehta

Associate Director

M: +65 8010 2687
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Swee Faith

Faith Swee

Senior Associate

M: +65 8949 3439
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Jessica Xi

Senior Associate

T: +852 3579 5486
M: +852 6713 1883
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Ryan Heng

Senior Associate

M: +65 8792 6334
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Yongtak Lee

Yongtak Lee

CEO & Managing Director

T: +82 2 6405 1021
M: +82 10 3110 2807
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Kim Tamara

Tamara Kim

Chief Legal Officer & Senior Director

M: +82 10 7365 4628
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Kaylee Kim


T: +82 2 6405 1021
M: +82 10 7106 1709
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Cha Chloe

Chloe Cha

Senior Associate

T: +82 2 6405 1021
M: +82 10 7164 7071
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Jayasundara Nelumi

Nelumi Jayasundara


M: +852 9801 3916
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Cho Wooyoung

Wooyoung Cho

Junior Associate

T: +82 2 6405 1021
M: +82 10 7120 1827
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138 Market Street #05-01,
Singapore 048946

T: +65 9384 6484

Hong Kong

4/F, Lee Garden Three,
1 Sunning Road,
Causeway Bay, Hong Kong


#1908 19Fl., S Tower Bldg.,
82 Saemunan-ro, Jongno-gu,
Seoul, South Korea

T: +82 2-723-1800

Godden Andrew

Andrew Godden

Chief Executive Officer - Australia

T: +61 (2) 9165-3502
M: +61 (0) 432-805-729
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Level 3,
222 Clarence Street,
Sydney NSW 2000

T: +61 (2) 9165-3500

Claro Fernando

Fernando Claro

Chief Executive Officer, Iberia

T: +34 91-419-76-30
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c/ Serrano, 240. Planta 5
28016 Madrid

T: +34 91-419-76-40

Astorqui Jose

Jose H. Astorqui

CCO, Latin America & Caribbean

T: +1 786-581-1899
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Miami (US)

800 Brickell Avenue
Suite 350, Miami, Florida 33131

T: +1 786-581-1896