How to Navigate a Warranty & Indemnity Claim

Warranty & indemnity insurance is a popular transactional risk management tool relied upon by dealmakers and clients as they become more familiar with the way the insurance works. In the last three years alone, Aon placed warranty & indemnity insurance policies on over 100 transactions in Australia and New Zealand, representing almost $5 billion in policy limits.*

With an increase in warranty & indemnity insurance policies being placed, this has resulted in an upward trend in the number of claims, with Aon receiving an average of one notification per month during 2020 and 2021.*

Based on Aon’s market experience, this article provides Insureds with guidance on how to navigate a warranty & indemnity claim, including:

• Making a warranty & indemnity claim
  • When to notify
  • Notification inclusions
  • Quantum
  • Broker support
• Claims trends
  • Frequency and size
  • Common breach types
• Claims process insights
• Claims case studies

*Aon proprietary data

Further insights from a global perspective on claims activity during an unprecedented year, can be found in our Transaction Liability Insurance Claims Study. The report provides valuable insight arising from Aon’s experience in the representations and warranties and tax insurance space. It examines emerging trends with respect to claim size and frequency, as well as tax and international claims data to provide an expanded view. Click the link below to download the full report.