Investor diligence & data rooms · Specialist

Representations and warranties insurance

Also called: RWI, W&I insurance

ELI5

Insurance against some broken deal promises.

Used in conversation

“The buyer is evaluating representations and warranties insurance.”

Definition

Insurance covering specified losses from breaches of transaction representations and warranties.

Here “Representations and warranties insurance” means: Insurance covering specified losses from breaches of transaction representations and warranties.

Pitch context

You will see “Representations and warranties insurance” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches investor diligence & data rooms.

Why it matters: In investor diligence & data rooms, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 7

Direct term-level sources and supporting source families.