Buyers’ motivations are different to sellers. Insurance is becoming more common for M&A transactions, but there are reasons why a buyer might be comfortable without a policy. They may be taking on misrepresentation as a business risk, or they may be comfortable because of the indemnification rights the sellers have provided. They may have negotiated a robust set of representations and a large escrow, in the knowledge that the sellers are on the hook for misrepresentations. The buyer’s risk appetite is unlikely to be the same as the seller. As sellers are the ones who are exiting their businesses, they should look to shift the risk of financial loss due to a misrepresentation to the insurance market.