Authors: Olavi-Jüri Luik and Martin Alamets
The article was published in Äripäev on 6 August 2026 (in Estonian): "Advokaadid: Balti tehinguturg muutub. Seni nišilik kindlustus kogub kiiresti kaalu" ("Lawyers: the Baltic deal market is changing. A hitherto niche insurance is rapidly gaining weight"). The full text is for Äripäev subscribers; below is a short summary of its main message.
Date note: the date of this post (6 August 2026) is the date of the original publication. This English version was written for this website in 2026.
The main message
In an opinion piece in Äripäev, WIDEN attorneys Olavi-Jüri Luik and Martin Alamets discuss warranty and indemnity (W&I) insurance, which covers a buyer's loss if the seller's warranties in the share or asset purchase agreement prove untrue and allows the seller to limit its post-closing liability.
In the authors' assessment W&I insurance is still used relatively rarely in the Baltic market, but deal-market trends indicate that it will become increasingly standard practice in the coming years, including for mid-sized transactions.
Points to watch
A W&I policy does not replace the buyer's own due diligence: it typically excludes matters known to the buyer and forward-looking statements. Exclusions, retention and limit should therefore be aligned with the warranties and liability caps in the purchase agreement. After closing, directors' cover also matters, because a change of control makes D&O run-off questions practical.