After any merger or acquisition, disputes can arise regarding the accuracy of representations and warranties made by the seller to the buyer.In most transactions today, the buyer obtains representation and warranty insurance to cover the buyer for losses resulting from the seller’s breach of a representation or warranty.When an R&W policy provides coverage, a seller may attempt to offset its obligations to the buyer by amounts paid by the R&W insurer.
Likewise, the R&W insurer may attempt offset against the damages paid by the seller to the buyer.But other legal and equitable concepts may prevent them from doing so.In an article recently published by the Insurance Coverage Law Center, my colleagues Syed Ahmad, Patrick McDermott, and Adriana Perez explore whether such offsets are available to sellers and R&W insurers.
Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Health Insurance USA.
Publisher: Hunton Insurance Recovery
Publisher: Hunton Insurance Recovery
