Both buyers and sellers can benefit — buyers are protected from undisclosed liabilities, while sellers can secure clean exits with limited indemnity exposure.

It covers losses resulting from inaccurate or false statements in the purchase agreement, including tax liabilities, legal disputes, or compliance issues.

Coverage typically extends for several years post-closing, depending on the deal structure and the nature of warranties insured.

It facilitates smoother negotiations, supports deal confidence, and mitigates post-closing litigation risks.