Eric Jesse, partner in Lowenstein Sandler's Insurance Recovery Group, discusses best practices for securing Reps & Warranties insurance for mergers, acquisitions, and other financial transactions.
Speaker:
Eric Jesse, Partner, Insurance See more +
Eric Jesse, partner in Lowenstein Sandler's Insurance Recovery Group, discusses best practices for securing Reps & Warranties insurance for mergers, acquisitions, and other financial transactions.
Speaker:
Eric Jesse, Partner, Insurance Recovery
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READ THE TRANSCRIPT
Eric Jesse: Hi, I'm Eric Jesse, Partner in Lowenstein Sandler's Insurance Recovery Group. Some of you may have been reading our series on LinkedIn called “In the Know,” where each month we share relevant and practical tips about insurance policies and the insurance market. Now I'd like to welcome you as we move our “In the Know” series to video. And for our inaugural video, I'd like to talk to you about an insurance policy that is near and dear to my heart: Reps & Warranties Insurance.
The second half, and really the fourth quarter, of 2021 showed us again that the popularity of R&W insurance in mergers and acquisitions continues to climb. During that time, the market was incredibly hot, and underwriters were overwhelmed to the point where they had to turn down deals because of lack of bandwidth, something we had never seen before. And as we get into 2022, the R&W market has had a chance to breathe a bit, but it still remains active. However, the best practices that buyers learned last year, and maybe had to learn the hard way, are something that they should continue going forward.
So first, start the R&W process early, and earlier than you normally did on past deals. In the controlled chaos of signing or closing a deal, R&W insurance can certainly join and be part of that process, but there is no downside and no commitment to having a broker go out to the market early to obtain quotes. For one thing, brokers need surprisingly little inform to go out to the market, and once you as the buyer have the quotes, you can evaluate them. You can eliminate the uncompetitive ones, and you can identify the leading insurers and have them refresh their quotes as the deal docs move along.
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In the Know Video Series
Attorneys in Lowenstein Sandler's Insurance Recovery Group share relevant and practical tips about insurance policies and the insurance market. See less -
