What Are the Key Differences Between CFC and Coverdash Representations and Warranties Insurance?
Fast Small-Deal Products and Published Capacity vs a Panel Broker
CFC underwrites R&W for private equity firms and strategic buyers and sellers. Beyond its core policy, it sells Buyer Protect and Seller Protect for deals under $20 million with a 24-hour placement window, publishes capacity up to $50 million per transaction plus $150 million excess for certain fundamental representations, and runs a secondaries practice for fund-interest transfers. Coverdash arranges quotes from a panel of insurers and publishes no limits, retentions or timing. Choose CFC if your deal is under $20 million and needs to close fast, or you need large capacity; choose Coverdash if you want several insurers' quotes compared for you. [3] [4]
Buy-Side and Escrow Guidance at Coverdash
Coverdash says either party can buy, that buy-side policies are more common because the buyer recovers directly from the insurer, and that R&W can reduce or replace escrow and indemnity holdbacks, so sellers get more cash at closing. CFC offers both sides through separate products but doesn't frame its policy as an escrow substitute. [4] [3]
What Should You Confirm in CFC and Coverdash Representations and Warranties Insurance Quotes?
- Ask Coverdash which insurer would issue the policy, and CFC whether it's placed with a Lloyd's syndicate or another A-rated company. [4] [3]
- Ask Coverdash whether it's quoting buy-side or sell-side, and CFC whether it's the core policy, Buyer Protect, Seller Protect or excess on fundamentals. [4] [3]
- Compare how each quote changes escrow and holdbacks under your purchase agreement. [4]
- Compare CFC's $50 million / $150 million capacity with Coverdash's quoted limit and retention. [3] [4]