Reps & warranties insurance (RWI)

A policy that covers losses from a breach of the seller's representations, letting a buyer recover from an insurer rather than pursue the seller directly.

It is uncommon at the smallest deals and more common as size climbs: it can shrink the escrow holdback and speed a close, but a premium and a retention mean it earns its place mainly when the seller's covenant is thin or the seller is leaving entirely.