Protecting your assets and liabilities
Warranty and Indemnity Insurance
When a company is sold, the vendor must warrant to the buyer that the information used to set the price is exact, complete and sincere.
The vendor provides the buyer with a guarantee on reported assets and liabilities and, to cover this risk, takes out a warranty and indemnity insurance solution for the guaranteed amount. Except in the event of fraud, the insurance enables the vendor to effectively transfer risk to the insurer while securing the proceeds of the sale. In this regard, warranty and indemnity insurance is a real innovation, as all other systems guaranteeing the warranty (bank guarantee, escrow, earn-out) are designed to benefit solely the buyer.
Warranty and indemnity insurance covers the financial consequences of claims resulting from actual or alleged non-compliance with any declaration or guarantee provided by the vendor.
The policy may be taken out by:
- the vendor (known as a seller-side policy) to cover the guarantees granted to the buyer,
- the buyer (known as a buyer-side policy) to add to the amount or duration of the guarantee received from the vendor.
Driven by long-standing expertise in Warranty and Indemnity insurance, SIACI SAINT HONORE is able to provide you with real added value at each step of the implementation of the insurance and the management of any claims.
OUR CLIENTSWe set up tailor-made solutions for:
- Companies operating in the financial sector: banks, private equity firms, asset managers, etc.
- Companies involved in financial transactions concerning the sale or acquisition of companies
WHich coverage / services do you require?We offer you solutions suited to the specific nature of your transactions: transactional insurance, in particular warranty and indemnity insurance, related to sale or acquisition operations of corporate securities or assets.
HOW WE ASSIST YOUDesigning the terms of guarantee
We assist you upstream of the operation’s launch to share our observations on the proposed terms of guarantee, the insurability of the operation and warranty and indemnity clause, and to make suggestions.
Obtaining non-binding quotes
We look for expressions of interest from insurers in France and on international markets, in particular in London, approve the guarantee plan and obtain non-binding quotes.
Analyzing insurer proposals
We act as an intermediary between the parties: we explain their respective positions and take part in negotiating the contractual coverage documents.
Finalizing the insurance policy
We review and negotiate the key points of the insurance policy to ensure that the various contractual documents related to the transaction are coherent. When it’s necessary, we can provide additional capacities.
When faced with complex claims, we act as an intermediary between the client and the insurer to facilitate an understanding of each party’s positions..
WHY CHOOSE SIACI SAINT HONORE?A pioneering role
SIACI SAINT HONORE’s Assurance & Capital Partners department played a key role in the introduction and development of warranty and indemnity insurance solution in France. Today, the insurance is regularly used by Merger & Acquisitions teams, particularly in Capital Investment world. We bring to you the experience gained in the development and assistance of around one hundred portfolio management companies (capital investment or listed asset management companies), of some of the most prestigious financial institutions and of many international industrial groups.
A strong ability to innovate
We continue to be a driving force behind reflection and proposals with regard to the risks to which our clients are exposed through analysis work conducted internally or by working with legal or financial consultants. Lastly, we provide you with international monitoring through our JTL International Network..