UK-based insurer Beazley has launched a new product, called Deal Protect, to cover losses from inaccuracies in representations (reps) or warranties made in share or asset sale and purchase agreements.

The new coverage, which is specifically aimed at smaller deals that are not underwritten by most insurers, is available only for deals worth in excess of $50m. It will cover deals starting from $10m in value and with available limits of up to $5m per deal.

Beazley M&A transaction liability team head John McNally said that the company’s goal has been to provide a form of cover that is very easy to put in place and will resolve many of the anxieties and concerns that can afflict the parties to smaller deals.

"We believe that entrepreneurs and families in particular will value the opportunity to mitigate the risks relating to the sale of assets or businesses that they have created," McNally added.

Buyers or sellers worldwide opt for reps and warranties insurance to reduce uncertainties in M&A transactions.