---
title: "What Is Representations and Warranties Insurance?"
description: "Representations and warranties insurance can cover loss from inaccurate statements in a business purchase agreement; known issues and purchase-price disputes require separate review."
canonical: "https://thegeneralaverage.com/coverage/representations-warranties"
page-type: "coverage-article"
updated-at: "2026-09-25"
coverage-line: "representations-warranties"
---

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[Human-readable page](https://thegeneralaverage.com/coverage/representations-warranties)

## Agent Guide

**What this page is:** National guide to What Is Representations and Warranties Insurance?: what it covers, common policy questions, and which providers document offering it.

**Use this page when:** Explaining What Is Representations and Warranties Insurance? in general terms. For a specific state's rules, use /coverage/representations-warranties/{state} instead.

**Questions this page answers:**
- What is What Is Representations and Warranties Insurance??
- What does What Is Representations and Warranties Insurance? cover and not cover?
- Which providers offer What Is Representations and Warranties Insurance??
- What should I ask before buying What Is Representations and Warranties Insurance??

**Key facts:**
- Lists 16 providers with documented What Is Representations and Warranties Insurance? offerings, linked to their profiles.

**Limits (do not over-claim):**
- National overview only: state law, pricing, and availability vary and are not established here.
- Provider listings are documented offerings, not quotes, endorsements, or a guarantee of availability for a given business.
- Informational, not insurance, legal, or tax advice; a policy's actual terms control.

**Provenance:** Cited editorial guide, updated 2026-09-25. See the Sources section for each claim.

**Related pages:**
- [Coverage directory](https://thegeneralaverage.com/coverage) — parent hub
- [Business insurance by state](https://thegeneralaverage.com/coverage/states) — state-specific requirements
- [What Is Directors and Officers Insurance?](https://thegeneralaverage.com/coverage/directors-officers) — related coverage
- [What Is Management Liability Insurance?](https://thegeneralaverage.com/coverage/management-liability) — related coverage
- [Editorial policy](https://thegeneralaverage.com/editorial-policy) — how sources are chosen and reviewed

# What Is Representations and Warranties Insurance?

Representations and warranties insurance can cover loss from inaccurate statements in a business purchase agreement; known issues and purchase-price disputes require separate review.

## Representations and Warranties Insurance Summary

Representations and warranties insurance can cover a buyer’s or seller’s loss from inaccurate statements in a stock or asset purchase agreement. For a business sale, check who is insured, who can recover and how known issues are treated. [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [3](https://www.coverdash.com/coverage/transactional-risk) [3](https://www.coverdash.com/coverage/transactional-risk) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [3](https://www.coverdash.com/coverage/transactional-risk)

## What Does Representations and Warranties Insurance Cover?

If due diligence later uncovers an inaccurate statement in the sale agreement, the buyer and seller may look to the policy and their remaining contract protections. [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/)

Representations and warranties insurance can protect a buyer or seller from financial loss when a statement in a business purchase agreement is inaccurate. [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/)

### Statements in the Sale Agreement

Representations and warranties are statements of fact about the business being sold; an indemnity is a separate promise to be responsible for another party’s loss if a described event occurs. [1](https://www.cfc.com/en-us/products/class/transaction-liability/)

### Who Is Insured and Who Can Recover

Confirm whether the buyer or seller is insured, and ask who can recover under the policy and how that recovery interacts with claims against the seller. [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [3](https://www.coverdash.com/coverage/transactional-risk)

| Question | Why it matters in a stock purchase |
| --- | --- |
| Is the buyer or the seller insured? | The two structures answer different loss paths. |
| Who can recover under the policy? | Recovery is not automatic from the product label. |
| How does recovery interact with claims against the seller? | Remaining seller indemnity still belongs in the same conversation. |

## Who Needs Representations and Warranties Insurance?

Consider R&W when you're buying or selling a business through a stock or asset purchase. Review it alongside the purchase agreement, disclosures and due-diligence findings. [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [3](https://www.coverdash.com/coverage/transactional-risk) [1](https://www.cfc.com/en-us/products/class/transaction-liability/)

## Representations and Warranties Insurance Coverage Examples

### An Inaccuracy Comes to Light After Closing

After buying a business, you discover that a statement in the purchase agreement was inaccurate.

R&W may cover financial loss from an insured inaccuracy. The representations, disclosures and policy terms determine the scope and how recovery works alongside seller indemnity. [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [3](https://www.coverdash.com/coverage/transactional-risk)

### Diligence Finds a Problem Before Signing

Your team identifies a potential problem before signing the purchase agreement.

Known issues can be treated differently from inaccuracies discovered later. Disclose the problem so the insurer can explain whether it is excluded or otherwise addressed. [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [3](https://www.coverdash.com/coverage/transactional-risk) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions)

## How Do You Compare Representations and Warranties Insurance Coverage and Costs?

### The Purchase Agreement and the Policy

Compare the representations in the purchase agreement and disclosure schedules with the statements the policy is intended to insure. [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/)

### Limit, Retention and Duration

Compare the proposed limit and retention with the size of the deal and the remaining seller indemnity, and ask how long the policy runs after closing. [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/)

A deal may retain seller indemnity, escrow or other security even when insurance is purchased. Compare those protections with the policy's limit and retention. The insurance and purchase agreement need to work together; buying a policy doesn't itself remove the seller's remaining contractual obligations. [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/)

## What Known Issues Should You Discuss?

Ask how the quote treats issues already known from due diligence or disclosure, as opposed to inaccuracies that were not known when the deal was signed. [3](https://www.coverdash.com/coverage/transactional-risk) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions)

| Example issue | Question to ask |
| --- | --- |
| An accounting error that was not known at signing | Is this the kind of inaccuracy the quote is meant to address? |
| A tax exposure already flagged in diligence | How does the quote treat a known issue? |
| A dispute about the purchase price | Is this a representations and warranties question at all? |

## How Does Representations and Warranties Insurance Compare With Related Coverage?

### Other Deal Products

Tax, contingent-liability and other transaction products are separate from representations and warranties insurance; list each product in the quote rather than treating the package name as complete. [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [3](https://www.coverdash.com/coverage/transactional-risk)

### Ongoing Management Liability

Representations and warranties insurance is arranged around a specific transaction; it is a different discussion from the company’s ongoing directors and officers or management liability coverage. [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [4](https://content.naic.org/glossary-insurance-terms)

## What Do You Need for Representations and Warranties Insurance Quotes?

Prepare the draft purchase agreement and disclosure schedules, due-diligence reports, a description of the buyer, seller and transaction, and any issues already identified that should be discussed with the insurer. [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [3](https://www.coverdash.com/coverage/transactional-risk) [1](https://www.cfc.com/en-us/products/class/transaction-liability/)

### Deal Documents and Diligence

| Prepare | Ask the broker |
| --- | --- |
| Purchase agreement and disclosure schedules | Which statements will the policy insure? |
| Due-diligence reports | Which issues were known before signing? |
| Buyer, seller and transaction details | Who will be insured, and who can recover under the policy? |
| Seller indemnity, escrow or other security | How do the limit and retention work alongside remaining seller protection? |
| Identified issues | How will the insurer treat each known issue? |

[2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [3](https://www.coverdash.com/coverage/transactional-risk) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [3](https://www.coverdash.com/coverage/transactional-risk) [3](https://www.coverdash.com/coverage/transactional-risk) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions)

## Representations and Warranties Insurance: Key Terms in Plain English

### Representation or Warranty

A statement of fact about the business being sold, made in the transaction agreement. [1](https://www.cfc.com/en-us/products/class/transaction-liability/)

### Seller Indemnity

A separate promise by the seller to be responsible for a described loss; compare it with the policy and remaining escrow. [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [1](https://www.cfc.com/en-us/products/class/transaction-liability/)

## Frequently Asked Questions About Representations and Warranties Insurance

### Does R&W Replace Ongoing D&O Coverage?

No. R&W is arranged for a particular transaction. Ongoing D&O and management liability address the company's continuing operations and leadership. [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [4](https://content.naic.org/glossary-insurance-terms)

### Can R&W Cover Issues Found During Diligence?

Known issues need to be disclosed and checked against the quote. They can be treated differently from inaccuracies that were unknown at signing. [3](https://www.coverdash.com/coverage/transactional-risk) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions)

### Does Representations and Warranties Insurance Protect the Buyer or the Seller?

The arrangement can be structured for either party. Confirm which party is insured, who can recover under the policy, and how an insurance recovery interacts with any claim against the seller. [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [3](https://www.coverdash.com/coverage/transactional-risk)

### Are Tax and Contingent Liability Insurance Included in R&W?

They are separate transaction products. Check which products the quote actually includes; a transaction-liability package name does not establish that tax or contingent-liability protection is included. [2](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions) [1](https://www.cfc.com/en-us/products/class/transaction-liability/) [3](https://www.coverdash.com/coverage/transactional-risk)

## What Coverage Is Related to Representations and Warranties Insurance?

- [What Is Directors and Officers Insurance?](https://thegeneralaverage.com/coverage/directors-officers) — D&O insurance can help pay covered defense costs and losses from claims against company leaders over management decisions. If your organization has a board or executives, check whether the company itself is insured and whether legal bills reduce the limit.
- [What Is Management Liability Insurance?](https://thegeneralaverage.com/coverage/management-liability) — Management liability packages can combine D&O and employment-practices coverage for leader and workplace claims, while benefit-plan protection may be a separate part. Shared limits can let a claim in one part reduce what is available for another, so compare the limits across the quote.

## Which Insurance Providers Offer Representations and Warranties Insurance?

### [AIG](https://thegeneralaverage.com/insurance-providers/aig)

AIG Representations & Warranties Insurance

### [Beazley](https://thegeneralaverage.com/insurance-providers/beazley)

Beazley offers representations and warranties insurance.

### [Berkshire Hathaway Specialty Insurance](https://thegeneralaverage.com/insurance-providers/berkshire-hathaway-specialty-insurance)

BHSI lists Representations & Warranties Insurance within its Transactional Liability products.

### [CFC](https://thegeneralaverage.com/insurance-providers/cfc)

CFC offers buyer-side and seller-side representations and warranties insurance.

### [Chubb](https://thegeneralaverage.com/insurance-providers/chubb)

Chubb offers representations and warranties insurance within its offering for large US- and Canadian-based multinational companies.

### [Corgi](https://thegeneralaverage.com/insurance-providers/corgi)

Corgi lists representations and warranties insurance for M&A buyers and sellers.

### [Coverdash](https://thegeneralaverage.com/insurance-providers/coverdash)

Coverdash arranges representations and warranties insurance for mergers and acquisitions.

### [Founder Shield](https://thegeneralaverage.com/insurance-providers/foundershield)

Founder Shield lists representations and warranties insurance for mergers and acquisitions.

### [Gallagher](https://thegeneralaverage.com/insurance-providers/gallagher)

Gallagher arranges representations and warranties insurance.

### [Heffernan Insurance Brokers](https://thegeneralaverage.com/insurance-providers/heffernan)

Heffernan arranges representations and warranties insurance.

### [HUB International](https://thegeneralaverage.com/insurance-providers/hub-international)

HUB International arranges representations and warranties insurance.

### [Liberty Mutual](https://thegeneralaverage.com/insurance-providers/liberty-mutual)

A group brand spanning personal and commercial insurance businesses; its business unit pages describe small-commercial cover for small businesses and commercial, specialty, surety, and reinsurance solutions for mid-size and large businesses.

### [Lockton](https://thegeneralaverage.com/insurance-providers/lockton)

Lockton arranges representations and warranties insurance.

### [Newfront](https://thegeneralaverage.com/insurance-providers/newfront)

Newfront arranges representations and warranties insurance as part of its mergers-and-acquisitions transaction-liability services.

### [The Baldwin Group](https://thegeneralaverage.com/insurance-providers/baldwin)

The M&A practice says its team can negotiate and place representations-and-warranty policies.

### [USI Insurance Services](https://thegeneralaverage.com/insurance-providers/usi)

USI arranges representations and warranties insurance.

## Sources for Representations and Warranties Insurance

1. [Transaction liability insurance | Representation and indemnities insurance](https://www.cfc.com/en-us/products/class/transaction-liability/). CFC; What are representations and warranties?; Who should buy representation and warranty insurance?; Available to buyers & sellers; Limited seller security; Is transaction liability insurance available to sellers. Accessed 2026-09-16.
2. [Mergers & Acquisitions](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions). Beazley; Product overview: buyer and seller protection for inaccuracies in representations or warranties. Accessed 2026-09-16.
3. [Transactional Risk Insurance](https://www.coverdash.com/coverage/transactional-risk). Coverdash; Transactional risk insurance; representations and warranties coverage; buy-side policies; tax and contingent liability products. Accessed 2026-09-16.
4. [Glossary of Insurance Terms](https://content.naic.org/glossary-insurance-terms). National Association of Insurance Commissioners; Directors & Officers Liability. Accessed 2026-09-16.

Updated 2026-09-25. Spot, a product of Tools for Enlightenment, publishes this research and works in the commercial insurance market. [Editorial policy](https://thegeneralaverage.com/editorial-policy). To suggest a correction, [email The General Average](mailto:thegeneralaverage@spot.insure) with the page URL and supporting source.

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- [Markdown page](https://thegeneralaverage.com/coverage/representations-warranties.md)
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