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Transactional insurance for M&A risksMergers and acquisitions may seem like the domain of bankers and lawyers, but more and more, insurance companies are getting involved. A recent report shows that insurers increasingly play a role in backstopping the assurances that sellers provide to buyers.

Indemnity packages in M&A transactions traditionally use escrow accounts into which a portion of the deal proceeds are deposited for a set amount of time. That money can be used to compensate the buyer if there are breaches in the representations and warranties made about the business by the seller.

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