CFC vs Foundershield: Representations and Warranties Insurance

CFC underwrites transaction liability and advertises up to $50 million per deal; Founder Shield brokers with outside carriers and describes buyer-side risks including misstatements and undisclosed tax liabilities.

Kearny Risk organizes these comparisons for firms whose advice, content or technology creates professional exposures.Research updated 2026-09-29

CFC writes R&W itself with up to $50 million per deal and off-the-shelf Buyer Protect and Seller Protect products for deals under $20 million; Founder Shield is a broker that shops insurers rated A- or better for private equity, strategic buyers and family businesses being sold.

Sources reviewed

  1. 01
    Mergers & Acquisitions

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

  2. 02
    Regulatory information

    CFC · CFC Underwriting Limited; CFC Lloyd's Syndicate 1988 · accessed 2026-09-23

  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

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

Small-Deal Products and Published Capacity vs a Broker’s Search

CFC underwrites transaction liability with stated capacity of $50 million per deal plus $150 million of excess for certain fundamental representations, and sells Buyer Protect and Seller Protect as standalone products for deals under $20 million. Founder Shield is a retail broker that places R&W with outside insurers rated A- or better by AM Best, names none of them, and publishes no deal-size limits. Choose CFC if your deal is under $20 million and you want a ready-made product, or if you need large fundamental-rep excess; choose Founder Shield if you want a broker to compare several insurers for a sponsor, strategic or family-business sale. [3] [5] [6]

Secondaries and Contingent Tax vs Buyer-Side Examples

CFC’s core policy covers representations and warranties, contingent tax and other M&A liabilities, and it also insures secondary transactions where investors move fund interests. Founder Shield gives examples of what its placements cover, mostly for buyers: financial-statement errors, undisclosed tax liabilities, regulatory non-compliance and undisclosed contracts or leases. If you are a fund doing a secondary, only CFC names that cover. [3] [7]

Financial Sponsors and Family Sellers

Founder Shield names private equity and other financial sponsors, strategic buyers, corporate sellers divesting a unit and family-owned businesses. It says premium is typically a percentage of the negotiated limit. CFC writes on behalf of Lloyd’s syndicates and A-rated insurers. [7] [3]

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

  • Ask Founder Shield which insurer it is quoting, and CFC which syndicate or insurer backs your policy. [6] [3]
  • Ask CFC whether you are quoted Buyer Protect, Seller Protect, core transaction liability or secondaries cover. [3]
  • Ask Founder Shield which of its example misrepresentations the quoted form actually covers. [7]
  • Compare premium as a percentage of limit across both quotes, including any excess layer. [7] [3]

Areas of coverage

CFC

  • role: CFC's Transaction Liability practice underwrites representations and warranties (R&W) insurance for M&A deals, available to both buyer-side and seller-side purchasers, alongside standalone small-deal products and secondary liquidity solutions. Transaction liability product page overview, describing CFC as a deal facilitator working with private equity firms and strategic buyers and sellers.company-reportedSource ↗
  • coverage: Beyond its main R&W policy, CFC sells two standalone small-deal products: Buyer Protect, described as covering a buyer for up to 100% of enterprise value, and Seller Protect, described as protecting sellers of small businesses during an M&A transaction. Both are limited to deals under $20 million. Product page descriptions and the 'Solutions' section, which caps buyer protect/seller protect at deals under $20m. The page's key-features bullets for these two products use near-identical wording about the buyer bringing a claim, so the exact difference in claims mechanics between the two products was not independently confirmable from this page alone.company-reportedSource ↗
  • coverage: The core transaction liability policy covers representations and warranties, contingent tax, and other M&A liabilities, and CFC also offers excess coverage layered on top for certain fundamental representations. Product page key features and the 'Limit & appetite' section; exact terms are set by the policy as issued.company-reportedSource ↗
  • coverage: CFC separately offers secondary liquidity solutions for private market investors acquiring, divesting, or restructuring interests in private equity, private credit, or other fund assets, through what it calls a dedicated secondaries underwriting practice. Secondary liquidity solutions section of the product page.company-reportedSource ↗
  • insurer: CFC says it underwrites transaction liability business on behalf of Lloyd's of London syndicates and insurance companies rated 'A' or better by AM Best, without naming a specific carrier for any individual deal. Limit & appetite section of the product page; the specific carrier for a given policy would appear on that policy's documents.company-reportedSource ↗
  • limits: CFC says it can underwrite up to $50 million of limit on a single transaction, or up to $150 million of excess coverage for certain fundamental representations. Limit & appetite section of the product page.company-reportedSource ↗
  • application: For the Buyer Protect and Seller Protect products, CFC says coverage can be placed within 24 hours of receiving the application form, and can be arranged after closing. Buyer protect and seller protect key features on the product page.company-reportedSource ↗
  • claims: CFC has a dedicated transaction liability claims team in its London and New York offices, says it has handled nearly 300 claims to date, and aims to send an acknowledgement within 24 hours of a claim notification. Claims section of the product page; outcome statistics are company-reported and not independently verified.company-reportedSource ↗

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 ↗

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