Reps And Warranties Insurance Calculator

R&W insurance transfers indemnity risk from seller to insurance carrier.

Deal size

Coverage % of deal

Retention % of deal

Premium % of coverage

Total premium

$450,000

Coverage limit

$15,000,000

Retention

$750,000

How the math works

Coverage = deal × coverage %. Retention = deal × retention %. Premium = coverage × premium %.

$100M × 15% = $15M coverage. $100M × 0.75% = $750k retention. $15M × 3% = $450k premium.

How to Use

Enter deal size.
Enter coverage limit.
Enter retention %.
Enter premium %.
Read premium and structure.

Frequently Asked Questions

R&W coverage?

Insures against breaches of seller reps and warranties. Coverage typically 10-30% of deal value. Retention 0.5-1.5% of deal. Term 3-7 years (6 years most common). Premium 1.5-5% of coverage.

Buyer vs seller policy?

Buyer-side: buyer pays, buyer benefits if seller breach. Seller-side: seller pays, protects against post-close claims. Buyer-side more common. Seller-side for unique transactions.

When beneficial?

Private equity deals. Competitive auctions (seller attracts better offers). Distress sales (seller limited funds to indemnify). Cross-border transactions. Reduces escrow requirements. Accelerates closing. Common in deals >$50M.

How does this affect my portfolio-level metrics?

Single-asset impact rarely matters in isolation for a portfolio of 20+ assets, but systematic patterns do. If the same issue shows up across 10% of your portfolio, the aggregate impact is meaningful. Track this metric at the portfolio level quarterly. Institutional operators aggregate these monthly into a KPI dashboard for investors and lenders.