Frequency/market practice: Commonly between 30% to 40% for business warranties in negotiated purchase agreements, with fundamental warranties being at 100%.

Frequency/market practice: The limitations usually apply to warranty claims only, however it is common that all claims under the purchase agreement (other than for breaches of any restrictive covenants) will not exceed 100% of the purchase price. It is also common to agree separate caps for any express indemnities.

Frequency/market practice: Fundamental warranties (e.g., title, capacity and due authority) are often not subject to the cap that applies to business warranties. Other exceptions include tax and specific areas of concern, which may be subject to a higher cap/express indemnity.

Frequency/market practice: A deductible is usually resisted and a tipping basket is more common.

Frequency/market practice: Very common.

Frequency/market practice: General survival of 18 to 24 months is common (usually one full audit cycle under the buyer's ownership) for business warranties. Tax, environmental and fundamental warranties and/or specific indemnities will be subject to a longer tail period.

Frequency/market practice: It is common to carve out fraud. The liability period for tax warranties is typically longer than the liability period for business warranties.

Frequency/market practice: Warranty and indemnity insurance is increasingly common, especially in transactions involving private equity institutions or sovereign wealth funds.