In an M&A agreement, the seller provides the buyer with a Representation and Warranty about the subject company and agrees to indemnify/indemnify the buyer for damages incurred as a result of the breach.
W&I insurance is an insurance contract in which the Seller/Buyer's loss due to a breach of the Warranty of the M&A contract is transferred to the insurer through an insurance contract.
The policyholder can be the seller or the buyer, and in practice, most of the products that the buyer subscribes to (Buy-side Policy).

- Providing risk termination Coverage to the acquired financial lender through the Assignment Notice of the insurance payment

- Promote M&A activation

- Complex M&A structure and diversification of industries increase unpredictable risk

- Expansion of overseas expansion of domestic companies increases various risks in the case of Cross-Border M&A Deal

- Overcoming the limitations of Due Diligence to reduce the work of advisors and law firms

- Helping a normal company (oversupply industry) to quickly reorganize its business before it becomes a bad company

- Ensuring misrepresentations in various aspects of the M&A contract
(Financial Statements, Taxes, Employment, etc.) Broadly collateralized

a) Seller Side

Buyer's loss due to a breach of SPA's Warranty by Seller and loss resulting from a 3rd party claim

b) Buyer Side

Compensate the Seller for damages resulting from a Claim filed by the Buyer as a result of the SPA's breach of Warranty.

- All defense costs