ACE Bermuda Launches New Primary Warranty & Indemnity Solution

ACE Bermuda International announced the launch of a new primary Warranty and Indemnity (W&I) insurance policy, designed to provide protection against financial losses arising from breaches of warranties and/or indemnities contained within a sale & purchase agreement.

ACE said the “W&I policy is available to both buyers and sellers to insure a party’s liability or loss with respect to the breach of a wide range of warranties, including those relating to ownership, intellectual property, audited accounts, contracts, employee matters, compliance and litigation. ACE’s policy also covers liabilities arising from an associated tax deed and provides protection in the event that reserves established for the payment of taxes due through the effective date of the transaction are inadequate.”

The bulletin also noted that ACE “has successfully written W&I insurance since 2005, and benefits from an underwriting expertise going back over 25 years. The new primary W&I insurance policy is available to UK domiciled companies and can be tailored for large, complex acquisitions or is equally suitable for smaller transactions.

Charles Davidson, Underwriting Manager, Professional Lines, ACE Bermuda International, commented: “Buying or selling a company can be extremely risky, and W&I insurance is becoming increasingly recognized as a mainstream and highly effective corporate finance tool in merger and acquisition negotiations helping to mitigate transactional risks.”

Anup Seth, Managing Director, ACE Bermuda International, added: “We offer a valuable combination of highly experienced underwriting, quality service, substantial capacity and financial strength ratings of ‘A+’ from both S&P and A.M. Best. These are critical factors in providing peace of mind for our clients in this ‘long tail’ class of business where policy periods can be up to six years or more.”

Source: ACE Bermuda International – www.acebermudainternational.com