Most acquisition agreements such as an asset purchase agreement are going to have representations and warranties made by both or all parties to the agreement and those representations and warranties will come with indemnification provisions if they are breached. Representations and warranties insurance is a means by which for both parties or even the seller to further protect themselves and insure against coverage under the circumstance of a breach of the representations and warranties and should be considered in most transactions as the cost could be well worth the benefit. If you have any questions regarding the purchase or sale of a business and acquiring representations and warranties insurance, you can speak with a business attorney by contacting The McGuire Law Firm.
Schedule a free consultation with a Denver Business Attorney.