What Are the Key Differences Between CFC and HUB International Representations and Warranties Insurance?
Published Capacity and Fast Small-Deal Cover vs Broker Negotiation
CFC writes R&W itself, stating up to $50 million on a transaction and $150 million excess on certain fundamental representations. For deals under $20 million, its Buyer Protect and Seller Protect policies can be placed within 24 hours of an application, even after closing. HUB's M&A practice is a broker that negotiates deal-specific cover, doesn't name insurers and publishes no limits or timelines. Choose CFC if your deal is under $20 million and you need cover fast, or you want known capacity; choose HUB if you want a broker to shop the deal and structure escrow and bid terms. [3] [5]
Secondaries and Excess vs Tax and Litigation Cover
CFC also offers secondary-liquidity solutions for transfers of fund interests. HUB says R&W protects a buyer if the seller's guarantees in the sale agreement prove untrue, and can reduce escrow and make your bid more competitive. It adds litigation buyout insurance for pending suits against the seller and tax indemnification for the tax treatment of past, pending or future transactions. [3] [5]
What Should You Confirm in CFC and HUB International Representations and Warranties Insurance Quotes?
- Ask HUB which insurer is quoting, and ask CFC whether a Lloyd's syndicate or one of its A-rated insurers is on risk. [5] [3]
- Ask HUB how its quote changes escrow and your bid structure under the purchase agreement. [5]
- Ask HUB whether litigation buyout or tax indemnification is included, and ask CFC whether Buyer Protect, Seller Protect or secondaries cover fits. [5] [3]
- Compare HUB's quoted limit with CFC's $50 million and $150 million excess figures. [3] [5]