W&I Insurance Claim Expert Witness UK

Warranty and indemnity insurance allows M&A buyers to claim under an insurance policy for financial warranty breaches rather than directly against the seller. W&I has become standard in UK M&A for transactions above a certain size threshold.

In a W&I claim, the insurer pays the buyer under the policy and then pursues subrogation rights against the seller, or the buyer pursues the insurer directly if the insurer refuses to pay.

The forensic accountant's role is the same in W&I claims: establishing the true financial position at completion and quantifying the diminution in value. However, W&I insurers typically conduct more rigorous expert evidence scrutiny.

W&I policies typically exclude fundamental warranties, fraud, and matters known to the buyer at signing. The expert must address whether the claimed loss falls within covered warranty categories and the policy period.