AIG vs Foundershield: Representations and Warranties Insurance

AIG describes R&W protection for buyers or sellers with shared, layered and excess structures; Founder Shield brokers with third-party carriers and lists buyer-side risks such as misstatements and undisclosed tax liabilities.

Kearny Risk organizes these comparisons for firms whose advice, content or technology creates professional exposures.Research updated 2026-09-30

Areas of coverage

AIG

  • role: AIG markets a transaction-specific R&W product and says coverage is written through AIG non-admitted carriers only. The particular issuing entity must be confirmed in the buyer’s transaction documents. Role in this product is limited to the description on the linked AIG source.company-reportedSource ↗
  • eligibility: AIG describes R&W insurance for buyers or sellers in merger and acquisition transactions and publishes a deal-size range as a marketing guide. That range is not an eligibility promise for a particular transaction. Audience is the segment AIG names on the linked source; this is not an underwriting decision, quote or guarantee of availability.company-reportedSource ↗
  • coverage: AIG says the product may protect against financial loss from breach of sellers’ representations and warranties. The page lists shared, layered and excess structures; policy wording and transaction diligence control the actual coverage. AIG’s public product description is not the policy. Actual entitlement depends on the applicable issued form, endorsements and declarations.company-reportedSource ↗
  • services: AIG describes M&A underwriters, prompt transaction support, multinational expertise and dedicated claims professionals for complex transactional disputes. These services are not a promise to accept or pay a claim. The linked page describes company-reported support; specific account services and third-party arrangements must be confirmed.company-reportedSource ↗
  • limits: AIG advertises limits up to $100 million per transaction and a typical retention reference of 1.0% of enterprise value dropping to 0.5% after 12 months. These are published product parameters, not a buyer-specific quote or guarantee. This statement reports only what the linked public source discloses and does not substitute for a quote or issued policy.not-disclosedSource ↗

Founder Shield

  • role: Founder Shield is a retail insurance brokerage, described on its site as “the innovation arm of The Baldwin Group,” and places Founder Shield Representations and Warranties Insurance with third-party carriers rather than underwriting the policy itself. About-us page; applies to Founder Shield's brokerage model generally, restated here for this line.company-reportedSource ↗
  • eligibility: Founder Shield markets R&W insurance to private equity and other financial sponsors, strategic buyers, corporate sellers divesting a business unit, and family-owned businesses being sold. Representations and Warranties Insurance product page.company-reportedSource ↗
  • coverage: Founder Shield lists financial-statement misstatements, undisclosed tax liabilities, legal or regulatory non-compliance, and undisclosed contracts or leases as the kinds of seller misrepresentations the policy can cover, mostly on the buyer side. Product page; the issued policy and declarations control actual coverage.company-reportedSource ↗
  • limits: Founder Shield's page does not publish specific limit figures; it says premiums are typically a percentage of the negotiated policy limit, which is set per transaction. Representations and Warranties Insurance product page, checked 2026-09-23.not-disclosedSource ↗
  • insurer: Founder Shield says it places policies, including Founder Shield Representations and Warranties Insurance, only with carriers rated A- or better by AM Best, chosen for the client's industry. It does not name the issuing insurer for this line; that depends on which carrier the policy is placed with. General carrier-selection FAQ, not specific to this line's placements.company-reportedSource ↗
  • application: You request Founder Shield Representations and Warranties Insurance through Founder Shield's website or an insurance advisor rather than binding coverage directly; Founder Shield says its placement team then approaches carriers on the client's behalf. About-us and carrier-selection pages describe the general placement process, not a line-specific application form.company-reportedSource ↗Source ↗

What Are the Key Differences Between AIG and Founder Shield Representations and Warranties Insurance?

How the risk is described

Founder Shield gives deal teams concrete examples of seller statements that may be at issue, including financial-statement misstatements, undisclosed tax liabilities, legal or regulatory non-compliance, and undisclosed contracts or leases. AIG frames its product around financial loss from a breach of seller representations and says it can be structured on a shared, layered, or excess basis. The first description helps identify diligence topics; the second directs attention to how insurance capacity is arranged. Neither list replaces review of the transaction wording. [7] [1]

Issuer identification

Founder Shield places coverage with third-party carriers rated A- or better by AM Best, selected for the client's industry, but does not name the R&W insurer before placement. AIG says its coverage is written through AIG non-admitted carriers and that transaction documents identify the issuing entity. In either process, the proposed carrier and its role should be visible before signing. [6] [1]

What Should You Confirm in AIG and Founder Shield Representations and Warranties Insurance Quotes?

  • Ask Founder Shield which A- or better carrier it selected and how the quoted wording treats each diligence issue identified. [7] [6]
  • Ask AIG to identify the issuing entity and map the shared, layered, or excess structure to the deal's recovery terms. [1]

Founder Shield names examples such as financial statement misstatements and undisclosed tax liabilities; AIG describes shared, layered, and excess R&W structures.

Sources reviewed

  1. 01
    Representations & Warranties Insurance

    AIG · Official AIG R&W page: M&A buyer/seller audience, advertised transaction size and capacity, typical retention, admitted basis caveat, claims and multinational transaction support; standard policy caveat. · accessed 2026-09-30

  2. 02
    Mergers & Acquisitions

    Beazley · Product overview: buyer and seller protection for inaccuracies in representations or warranties · accessed 2026-09-16

  3. 03
    Transaction liability insurance | Representation and indemnities insurance

    CFC · What are representations and warranties?; Who should buy representation and warranty insurance?; Available to buyers & sellers; Limited seller security; Is transaction liability insurance available to sellers · accessed 2026-09-16

  4. 04
    Transactional Risk Insurance

    Coverdash · Transactional risk insurance; representations and warranties coverage; buy-side policies; tax and contingent liability products · accessed 2026-09-16

  5. 05
    About Us

    Founder Shield · “Founder Shield is the innovation arm of The Baldwin Group”; company history and mission · accessed 2026-09-23

  6. 06
    How Do You Decide Which Carriers to Approach?

    Founder Shield · FAQ answer on carrier selection: works exclusively with A-rated (AM Best) carriers, matched by industry appetite · accessed 2026-09-23

  7. 07
    Representations and Warranties Insurance

    Founder Shield · What Is Reps & Warranties Insurance?; Who Needs Reps & Warranties Insurance Coverage?; What Does Reps & Warranties Insurance Cover? · accessed 2026-09-23

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