AIG vs Lockton: Representations and Warranties Insurance

AIG markets an R&W product written through AIG non-admitted carriers only; Lockton places RWI rather than underwriting it, using former M&A lawyers and dedicated claims experts after binding.

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

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

Indemnity design and policy structure

Lockton says RWI can replace or bolster seller indemnity or escrow, with the insurer indemnifying a buyer for loss from an unknown breach in the deal agreement. AIG likewise describes protection against seller-representation breaches, and lists shared, layered, and excess structures. Buyers and sellers negotiating who retains post-close exposure should compare Lockton's stated indemnity use with the exact layer and allocation AIG would quote. [5] [1]

Claims expertise

Lockton says dedicated transaction-liability claims experts support clients after binding and reports having helped settle hundreds of millions of dollars of RWI claims. AIG describes dedicated claims professionals for complex transactional disputes alongside M&A underwriting support. Both records therefore name claims resources; ask each team how those specialists participate in a claim and which insurer makes coverage decisions. [5] [1]

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

  • Ask Lockton how its claims experts coordinate with the issuing carrier and which buyer or seller indemnities the policy replaces. [5]
  • Ask AIG which carrier issues the policy and how each layer responds to the deal's negotiated indemnity. [1]

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 ↗

Lockton

  • role: Lockton's RWI Practice is staffed with former M&A lawyers and transaction advisors who Lockton says use a Partner/Associate model on every deal to provide 24/7 coverage; Lockton places RWI policies rather than underwriting them. RWI product page as read 2026-09-23.company-reportedSource ↗
  • coverage: Lockton describes RWI as a policy used to replace or bolster a seller indemnity or escrow in an M&A transaction, under which an insurer indemnifies the buyer for losses from an unknown breach of a representation or warranty in the deal agreement. RWI product page as read 2026-09-23. General description of how the product functions, not a specimen policy.company-reportedSource ↗
  • eligibility: Lockton frames RWI benefits separately for sellers (faster access to sale proceeds, reduced post-closing exposure, avoiding a guarantee) and buyers (broader protection, faster negotiation, avoiding conflicts in deals with meaningful seller participation), meaning both sides of an M&A transaction are the intended buyers of the product. RWI product page as read 2026-09-23.company-reportedSource ↗
  • claims: Lockton says it provides dedicated transaction liability claims experts after a policy is bound, and cites having helped clients settle hundreds of millions of dollars of RWI claims to date. RWI product page as read 2026-09-23. Aggregate claims-settlement figure is company-reported and not independently verified.company-reportedSource ↗
  • insurer: The RWI page does not name the insurers underwriting the representations and warranties policies Lockton places. RWI page checked 2026-09-23.not-disclosedSource ↗

Lockton focuses on buyer indemnity and escrow strategy plus dedicated claims experts; AIG describes shared, layered, and excess policy 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
    Representations & Warranties Insurance | Lockton USA

    Lockton · The Certain Solution for Transactional Risk; Why clients consider RWI versus traditional indemnity; Seller/Buyer benefits; Claims · accessed 2026-09-23

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