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R&W insurance provides coverage for losses associated with the breaches of the seller's representations and warranties made in an acquisition or merger transaction. (Photo: Shutterstock) R&W insurance provides coverage for losses associated with the breaches of the seller’s representations and warranties made in an acquisition or merger transaction. (Photo: Shutterstock)

For several years, buyers and sellers in M&A deals have been turning to representations and warranties (R&W) insurance to allocate risk — and they continue to do so during these unprecedented times. Yet, despite the increasing prevalence of R&W insurance, myths and misconceptions remain. When they are debunked, buyers should have a clearer understanding of the benefits that R&W insurance can bring to a deal.

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