Representation and Warranties Insurance Fundamentals
Time 2 Minute Read

The explosive growth of representations and warranties (R&W) insurance over the last decade is no secret.  But, for many, R&W insurance remains an enigma, particularly as respects filing a claim under such policies.  Indeed, even those involved in buying R&W insurance may not have experience on the claims end and, as a result, possess little knowledge on how to navigate the assortment of issues that may arise.  Of course, policyholders pursuing a claim under an R&W policy should be aware of the minefield of issues that await in establishing the two primary thresholds to recovery: breach and loss.  For example, insurers will scrutinize whether a breach of a representation has occurred, often requiring a hyper-technical showing of breach that may not align with the policyholders’ views.  Similarly, quantifying the loss resulting from the breach is rarely straightforward and often a source of dispute between insurer and policyholder, particularly as it concerns the use of a multiple. 

Recently, Hunton Andrews Kurth LLP attorneys Syed Ahmad, Patrick McDermott, and Kevin Small published a Lexis Practical Guidance note covering the fundamentals of R&W insurance that may be a useful resource for those wanting to learn more about R&W insurance and, in particular, the various issues that may come up when filing a claim.  The note explains the R&W insurance product and the underwriting process.  It then provides a detailed description of the claim process and identifies common areas of dispute when establishing breach and loss.  A copy of the note may be found here

  • Partner

    Syed represents clients in connection with insurance coverage, reinsurance matters and other business litigation. Syed serves as the head of the firm’s insurance coverage practice. He has been admitted to the US Court of Appeals ...

  • Counsel

    Patrick counsels clients on all aspects of insurance and reinsurance coverage. He assists clients in obtaining appropriate coverage and represents clients in resolving disputes over coverage, including in litigation and ...

  • Counsel

    Kevin is a commercial litigator who represents clients in insurance coverage disputes and other business litigation. Kevin represents policyholders in complex coverage disputes involving claims under various types of ...


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