After acquiring a subscription business, you discover sales were overstated because cancellations were hidden in a side spreadsheet. The SPA warranted the accounts were true. Internal messages show the seller knew. The deal is now worth less than you paid.

Buyer Protect is designed to cover loss linked to a reduction in the purchase price you paid from a covered breach, subject to offsets and terms.

Six months after buying a trades business, the ATO audits pre completion BAS and assesses underpaid GST. You later find bookkeeper emails warning the seller before sale. The SPA had a pre closing tax indemnity, but the seller will not pay, so you claim.

Buyer Protect can treat a pre closing tax indemnity as an insured obligation, so loss from a breach may be covered, subject to terms.

You buy a café and later receive a landlord notice: the previous owner made unapproved fitout changes. Due diligence missed it. Emails show the seller knew and stayed quiet. Your costs rise and the business value drops, so you notify the insurer.

Buyer Protect may cover loss where non-disclosure makes warranties wrong and you can show evidence the seller knew, subject to terms.

A seller exits a small ecommerce brand. After completion, the buyer finds a backlog of customer refunds that should have been processed before sale. The SPA said refunds were up to date. The seller genuinely did not know. The buyer seeks compensation.

Seller Protect may cover loss payable to the buyer for an innocent breach of seller warranties, plus defence costs, subject to terms.

The sale agreement includes a specific indemnity for a known tax review. Months later, an ATO assessment arrives and you pay it. You then submit a claim under W and I for the same loss, to recover the amount from the policy.

If the issue was disclosed and covered by a specific indemnity in the sale agreement, it is generally outside cover under the policy.

After buying a retail business, a regulator issues a civil penalty for pre-sale conduct. You pay the fine and legal bill, then lodge a claim hoping the policy will reimburse the penalty and any punitive damages.

Fines, penalties and sanctions are typically excluded where they are not insurable by law, along with punitive or exemplary damages.

You buy a services firm based on a sales forecast and an earn-out clause. The targets are missed, so you say the seller’s statements about future performance were wrong and you claim for the shortfall in revenue.

Policies exclude forecasts, projections and earn-outs because they relate to future performance or outcomes that are not guaranteed.

During due diligence, you learn the seller has an unpaid supplier dispute and it is listed in the disclosures. After settlement, the supplier sues and you try to claim under the policy to recover the settlement amount and extra costs.

These matters are usually not covered if you had actual knowledge before the policy started, or if they were disclosed in the sale process.