In a recent article published on JD Supra, authors Lynda A. Bennett and Eric Jesse from Lowenstein Sandler LLP, eradicated common misconceptions surrounding Reps & Warranties Insurance (RWI). Despite its growing popularity, ill-informed notions about this insurance product persistently weave themselves into legal conversations.
One widely held belief is that RWI is an expensive, unsuitable choice for certain types of deals. However, the authors indicate that this is a misconception. They argue that the product is quite adaptable to various situations, and with today’s competitive pricing, it is easily accessible for a wide variety of deals.
Another significant issue concerning RWI is the matter of claim payments. The perception here aligns closely with reality, with many advocates asserting that RWI insurers need to make improvements in this area. This discussion illustrates the importance of accurate and current knowledge and understanding for legal professionals.
An overview of RWI, its application, and its marketplace can equip these professionals to guide their clients more effectively through the decision-making process. Armed with this understanding and perspective, they can steer clear of the misconceptions that cloud judgement and potentially affect critical decisions related to representation and warranty insurance.