Comment on Griffith’s Deal Insurance: The Continuing Scramble Among Professionals
34 Pages Posted: 16 Jun 2020 Last revised: 17 Jun 2020
Date Written: May 21, 2020
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.
Keywords: mergers and acquisitions, legal profession, transactional lawyers, representation and warranty insurance
JEL Classification: K22
Suggested Citation: Suggested Citation