Market trends in the S&I insurance market and their impact on M&A contract practice.

Warranty and indemnity insurances have been an integral part of M&A transaction practice for many years. Here, risks of the target company that are the subject of warranties and indemnities from the sellers are covered by special transaction-related S&I insurance. In the economic result, the insurance company's liability fully or partially replaces the sellers' own liability. However, from the buyer's point of view, the complete exclusion of the seller's own liability is not unproblematic.