New Representations and Warranties Policy Announced

Executive Risk Chubb Executive Risk has created a new Representations and Warranties Liability insurance policy offering on a single form coverage for either the buying company or the selling company against certain unanticipated liabilities associated with mergers and acquisitions.

In the sale of a business, the seller makes contractual representations and warranties that form the basis of a buyer’s purchase decision. Chubb Executive Risk’s new policy helps protect a seller from financial loss resulting from a lawsuit caused by a breach of one or more insured representations or warranties.

A buyer can also purchase the new policy to help protect against financial loss resulting from a seller’s breach of one or more insured representations and warranties.