Warranty and indemnity (W&I) insurance is a policy that covers losses arising from breach of warranties or indemnities in a share sale or asset sale agreement. W&I insurance can be either buy-side (the buyer is the insured) or sell-side, with buy-side being substantially more common in Australia.
Australian W&I premiums in 2026 typically run 1.2% to 2% of the policy limit, plus underwriting fees. W&I insurance has moved meaningfully downmarket and is now routinely used on sub-$20M Australian transactions.