By Abraham J.B. Cable. Full Text.
In his recent article, Professor Sean Griffith observes a substantial development in the M&A market. Increasingly, buyers and sellers replace traditional deal terms with an insurance product—representation and warranty insurance (“RWI”). This essay considers how this new product and the insurance professionals who sell and underwrite it affect the traditional role of M&A lawyers. It concludes that RWI, in its present form, does not substantially encroach on the traditional role of M&A lawyers. But it also notes that representations and warranties are ripe for technological innovation and that insurance professionals may be better positioned then lawyers to seize the opportunity.