Warranty and indemnity (W&I) insurance protects parties in M&A transactions against financial losses arising from breaches of warranties or indemnities in the sale agreement. It benefits both buyers and sellers: sellers limit ongoing liabilities and avoid proceeds being tied up in escrow, while buyers strengthen their bids and safeguard the value of their investment after completion.

Tax liability insurance offers protection against identified tax risks that could crystallize into liabilities following a challenge from tax authorities. It covers associated interest, penalties, defense costs, and risks such as stamp duty, share schemes, employment-related securities, VAT, and transfer pricing. A further benefit is that insurers support the insured in resolving matters with the relevant authorities, reducing both financial and administrative burdens.

Contingent risk insurance addresses specific, identified risks that fall outside the scope of W&I and tax policies. Typically, these include adverse court judgments, regulatory decisions, contractual interpretation disputes, and complex ownership or title matters. The coverage ensures that insured parties are protected against material exposures that could otherwise result in significant losses.