Warranty and indemnity insurance

Being experts in Warranty and Indemnity insurance CLEAR understands that the buying or selling of assets can raise issues that potentially prevent the transaction from completing. In an increasingly cautious and litigious world, breaches of obligations under the Sale & Purchase Agreement (SPA) can often result in significant exposure to liabilities that could result in substantial financial loss.

Working with over 150 law firms throughout the UK on transactional risks, CLEAR's experience and market independence allows us to provide tailored insurance solutions to buyers and sellers. We can assess the specific needs of those involved in a sale or purchase in order to provide the right level of protection to ensure that risk is managed and the transaction can be completed with peace of mind on both sides.

Cover features and benefits

  • With complete independence, CLEAR have no ties to any one market and are able to provide unique, tailored insurance solutions
  • Cover against the loss resulting from a breach of warranty under the SPA or a breach of a tax deed or covenant
  • CLEAR have access to markets that can fill gaps in the Warranty and Indemnity policy
  • Warranty and Indemnity insurance can enable transactions to complete that might otherwise fall through
  • We do not charge abortive fees

What you need to know

Here are some of the most frequently asked questions we receive about our Warranty and Indemnity cover.

What does a Warranty and Indemnity policy cover?
The policy provides cover that will mirror the warranties and indemnities in the SPA. We aim to provide “back to back” cover where possible. We can provide cover for the seller or the buyer of a transaction.
What are the premium ratings?
Premium ratings are typically between 1% and 2% of the Limit of Indemnity sought (although for higher risk cases this can be much higher) and minimum premiums of around £35,000 apply. CLEAR can access other markets to “top up” the Warranty and Indemnity policy as this can be more cost-effective.
What is the application process?
We need a copy of the proposed SPA and any due diligence that is available. With these we will obtain a non-binding indication (NBI) from our available markets. The NBI will include the proposed structure of the policy and any exclusions that may apply.

Once you agree to proceed with your chosen insurer the underwriters will carry out their own due diligence and an underwriting call will take place to answer any queries the insurer may have. Once all queries are addressed a binding quote, along with the proposed policy wording, will be sent for your consideration.

What our customers have to say

“Clear Insurance Management Ltd assisted us in obtaining warranty insurance relating to the sale of a business towards the end of last year. They were extremely easy to deal with. We found them efficient and they obtained the level of cover and insurance we were looking for.”

Charles Tannenbaum
Jenson Pharmaceutical Services Limited

Speak to a specialist, Nick Mace, to arrange your insurance cover.

Call 020 8329 4964 or email