Representations and Warranties Liability Insurance

Chubb Group of Insurance Companiesany%> has created Representations and Warranties Liability Insurance, to help protect companies against certain undiscovered liabilities associated with buy/sell transactions.

The new policy helps protect a seller from financial loss resulting from a lawsuit caused by a breach of one or more insured representations or warranties. A seller makes contractual representations and warranties that form the basis of a buyer's purchase decision.

The Representations and Warranties Liability Insurance policy covers the selling company and any designated owners, shareholders, directors, officers or employees. The policy is triggered when a lawsuit or written demand is made by a buyer against a seller for a breach of a covered representation or warranty.

Each policy is crafted for a specific business transaction and the insured representations and warranties will vary depending on the nature of the transaction.

Common representations and warranties found in sales documents relate to financial statements, accounts receivable, taxes, employee benefits and intellectual property.

Limits are available up to $10 million and include those amounts the seller is legally obligated to pay, including damages, judgments, settlements and defense costs. Punitive damages are included, where allowed by law. The coverage is worldwide.

For more information, contact The Chubb Corporation, 15 Mountain View Road, Warren, NJ 07059. Telephone: 908-903-2000. Fax: 908-903-2027.