Title insurance can be used to provide protection against loss resulting from defects or failure of title to the property and/or the shares of the acquired entities that hold the asset. Common to real estate transactions, the extensive cover provided given the comparatively low pricing has led to an increasing uptake in title insurance policies within M&A transactions across Europe.
Title insurance is often used to transfer the title risks away from the SPA liability regime to a third party insurer; or to address risks identified during the due diligence process.