In the chart below, from a recent reps and warranties survey conducted by Lowenstein and Sandler LLP, respondents identified the most common breaches when reporting claims (respondents were allowed to identify multiple claims). It is not surprising that “Financial Statements” was the most common breach as these statements are at the heart of every deal. What we do find surprising is that “Employee Benefits” was reported by over 30% of the respondents. During the diligence process, insurance contracts are reviewed for adequacy of coverage and potential unknown liabilities. Employee benefits diligence reviews often take a “back seat” during this process as a necessary evil of total compensation. However, the high expense and complexity of health insurance contracts warrant an in-depth and expert review. The Virtus Private Capital Insurance Practice is poised for such a review.