Deal Point: A family business is being sold and the buyer and seller have agreed to all terms of the transaction including the amount of the indemnity supporting the representations and warranties. However, they have not agreed on the security supporting the indemnity. The buyer requires the full amount of $10,000,000, while the seller is only willing to agree to $2,000,000.

Transactional Insurance Solution: A Representations & Warranties Insurance policy is issued for $8,000,000 in excess of the $2,000,000 indemnity agreed to by the seller.