Warranty and indemnity insurance (W&I) in recent years has become a customary aspect of private equity and other M&A transactions, with investors well aware of the deal-enabling benefits (in particular, the transfer of risk onto third parties and the facilitation of “clean exits”). As a result of this increasing trend, there has also, as expected, been a sharp increase in the notification of claims by purchasers under such policies. Historically, there have been reports of a small number of full insurance limit claim payments, such as a €50 million to FSN Capital concerning its acquisition of Gram Equipment. As the number of claims made increases, insurers are scrutinising the terms of W&I policies ever more closely. It is therefore important that insureds consider how to increase the chances of recovery under a W&I policy in the event of potential claim.