Securing Representation and Warranty Coverage

We represent a large innovation and engineering consulting firm in its pursuit of insurance coverage under a representation and warranty insurance policy, which is a relatively new product on the insurance market.  Representation and warranty coverage protects buyers in a merger from loss due to breaches of a seller’s representations and warranties in a merger agreement.  In this matter, according to the broker, the claim is among the largest that had been made against a representation and warranty policy.  We promptly reached a favorable settlement with the lowest level insurers and are continuing to negotiate with the remaining insurers.  We also coordinated with underlying counsel to secure a favorable recovery from the seller.