# W&I insurance is gaining ground in Baltic M&A

URL: https://insurancelawestonia.ee/blog/2026-08-06-w-and-i-insurance-baltic-deals/
Author: Dr Olavi-Jüri Luik, Partner, Head of Insurance Law, attorney at law (Advokaadibüroo WIDEN OÜ)
Published: 2026-08-06
Last updated: 2026-11-05

> Luik and Alamets, Äripäev 6 Aug 2026: warranty and indemnity insurance is still rare in the Baltics but is becoming standard deal practice.

*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"](https://www.aripaev.ee/arvamused/2026/08/03/advokaadid-balti-tehinguturg-muutub-seni-nisilik-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.

## Related pages

- [D&O insurance in Estonia: director liability after leaving office](https://insurancelawestonia.ee/blog/2026-09-29-d-and-o-insurance-estonia-director-liability)
- [W&I insurance in Estonia: a guide for insurers](https://insurancelawestonia.ee/guides/warranty-and-indemnity-insurance-estonia)
- [Services for insurers](https://insurancelawestonia.ee/services-for-insurers)