Representations and Warranty Insurance Comes of Age

Representation and Warranties insurance was first introduced to the market place around 1998. Since that time, the use of Rep and Warranties insurance has grown considerably, particularly over the last three years. While initially some may have viewed such transactional insurance as a novelty, these products are now routinely considered by deal practitioners as a strategic option to mitigate risks in connection with the purchase and sale of businesses. In this article, partner Howard B. Epstein and special counsel Theodore A. Keyes discuss the growth of the Rep and Warranties insurance market.