Insuring Florida for Over 30 Years

Representations and Warranties Insurance (RWI) is a specialized transactional coverage used in mergers and acquisitions to protect against financial loss arising from a breach of the representations and warranties made in a purchase agreement. By transferring that risk to an insurer, RWI helps deals close faster, with less friction between buyer and seller.

RWI delivers value on both sides of a transaction:

• For buyers — recourse for losses from inaccurate seller representations, often with limits and survival periods beyond what a seller would otherwise agree to
• For sellers — a cleaner exit with reduced or eliminated escrows and holdbacks, freeing up sale proceeds
• For the deal — smoother negotiations, reduced indemnification disputes, and a more competitive bid
• Coverage scope — breaches of financial, operational, tax, compliance, and other representations, subject to the policy's terms, retention, and exclusions

RWI is most common in business sales, private equity transactions, and real estate portfolio acquisitions. As an independent agency, Pettineo Insurance works with the specialty carriers and underwriters who write this coverage to structure a policy around the specifics of your deal.