Deal Structuring
Representations & Warranties Insurance (W&I Insurance)
A third-party insurance policy that shifts the risk of a seller's warranty breach from the seller's personal indemnity obligation to an insurer, for a premium.
Buyer Example
On a ₹45 Cr buyout of a Gurugram SaaS company, the buyer takes a buy-side W&I policy at a 2.5% premium (₹1.1 Cr) covering tax and IP warranty breaches up to ₹40 Cr — giving the buyer real recourse against a solvent insurer rather than chasing a dispersed founder group years after closing.