Please help me understand the value in purchasing Rep and Warranty insurance. I see the value for Sellers, and can understand the potential appeal to buyers when acquiring companies from PE firms. But in my experience, policies are tremendously expensive and difficult to collect on. Additionally, R&W insurance only covers items that are properly due diligenced and will exclude any identified risks. Wouldn’t it make more sense for R&W Insurance companies to assess the identified risks and insure against the possibility of loss incurring from those risks? Then I might see the appeal.