Private Equity and Mergers & Acquisitions Insurance
Private Equity and Mergers & Acquisitions Insurance
Private Equity and Mergers & Acquisitions (M&A) Insurance protects investors, buyers, and sellers involved in corporate transactions. It includes products such as Warranty & Indemnity (W&I) Insurance, Tax Liability Insurance, Contingent Risk Insurance, and Title Insurance. These covers are designed to transfer deal-related risks, protect financial outcomes, and streamline negotiations.
Whether you are acquiring a business, divesting a subsidiary, or investing through a private equity fund, M&A insurance helps protect against financial loss resulting from unknown liabilities, breached warranties, or disputed tax exposures.
At Angelic Insurance, we help Australian investors, fund managers, and corporate advisers access tailored transactional insurance solutions. Our brokers provide general advice to support efficient deal execution and protect your capital.
How It Works
We work closely with legal, tax, and corporate advisory teams to structure fit-for-purpose cover aligned with your transaction timeline.
Share your transaction details
We gather information about the business type, deal value, structure (share or asset sale), jurisdictions, and timeline.
Identify key risk areas
We help highlight exposures including warranty breaches, historical tax liabilities, pending litigation, and regulatory uncertainty.
Compare insurer offerings
We approach specialist underwriters experienced in W&I and transactional risk to obtain quotes that suit your deal size and sector.
Tailor policy structure and limits
We assist with wording, coverage limits, excesses, and exclusions aligning with your sale agreement and legal advice.
Support execution and documentation
We coordinate with your legal and financial advisers to ensure smooth placement and inclusion in the deal process.
Help manage claims and post-deal changes
If an issue arises post-completion, we help with policy interpretation, claims submission, and insurer correspondence.
Why You Need It?
Transaction insurance allows parties to allocate and transfer risk facilitating faster deals, greater certainty, and improved financial outcomes.
Protects buyers from unknown liabilities
Buyers can claim against the policy for warranty breaches rather than pursuing the seller, preserving the relationship and certainty.
Helps sellers ringfence proceeds
W&I insurance can reduce the need for escrow or holdbacks, allowing sellers to access full sale proceeds at completion.
Speeds up negotiation and deal closure
Insurance helps resolve risk allocation more efficiently, enabling quicker sign-off and fewer deal blockages.
Provides certainty for investors and lenders
Cover offers reassurance to boards, financiers, and LPs by backing warranties and indemnities with insurance.
Covers complex or historic risks
Policies can address risks such as legacy tax issues, environmental liabilities, or litigation tied to the acquired business.
How Angelic Insurance Can Help?
We work with your M&A team to source, structure, and manage insurance solutions that protect your transaction and enhance deal value.
Compare specialist M&A insurers
We access leading underwriters with experience in W&I, tax, and contingent liability cover for private equity and corporate deals.
Align cover with sale agreements
We help tailor coverage to match the negotiated warranties, disclosures, and indemnities in the sale and purchase agreement.
Manage confidentiality and timing
We operate discreetly and efficiently to meet tight transaction timeframes while respecting commercial sensitivities.
Support tax and title-specific policies
We help structure standalone insurance for tax exposures, title risks, or litigation affecting the valuation of the target.
Help resolve claims and post-deal adjustments
If a covered event occurs after completion, we help prepare submissions and advocate for a fair claims outcome.
Challenges Businesses Face Without Private Equity and Mergers & Acquisitions Insurance
Without M&A cover, parties may face deal delays, escrow complications, or exposure to significant post-transaction liabilities.
Difficulty agreeing on warranty scope
Buyers and sellers may struggle to agree on liability caps, exclusions, or indemnity limits delaying completion.
Reduced seller proceeds
Sellers may be forced to hold funds in escrow or indemnify buyers for years limiting financial flexibility.
Risk to buyer value
Unknown liabilities or breaches post-deal can lead to costly legal action and erode the expected value of the acquisition.
Legal uncertainty post-completion
If disputes arise and no insurance is in place, both parties may face prolonged litigation and reputational harm.
Limited confidence from lenders or boards
Lack of insurance may raise concerns for banks, boards, or fund partners regarding transaction risk management.
Case Studies: How Private Equity and Mergers & Acquisitions Insurance Helped Real Businesses
Case 1 – W&I policy smooths SME acquisition
An Australian private equity firm acquired a regional services company. W&I insurance allowed the seller to receive full proceeds without escrow. A minor warranty breach was later covered by the policy.
Case 2 – Tax liability identified during due diligence
During a buyout, a historic payroll tax issue was discovered. The client’s broker helped arrange standalone tax insurance, protecting the buyer from a $210,000 exposure.
Case 3 – Title cover for asset acquisition
A property developer acquired a portfolio with unclear land titles. Title insurance was arranged to protect against boundary disputes and historical claims.
Case 4 – Dispute resolved via insurer, not seller
A tech company acquisition resulted in a breach of IP warranty. The buyer claimed under the W&I policy rather than pursuing legal action against the founders preserving the brand and investor trust.
Frequently Asked Questions
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