What Are the Key Differences Between CFC and Newfront Representations and Warranties Insurance?
Fast Small-Deal Cover vs a Broker Embedded in Your Deal
CFC writes R&W itself and offers Buyer Protect and Seller Protect for deals under $20 million, which it says it can place within 24 hours of an application, including after closing. Newfront places R&W through its Private Equity & Transaction Advisory Group, which it calls an extension of your deal team, and names no R&W insurer. Choose CFC if your deal is under $20 million or you need cover fast; choose Newfront if you want a broker running diligence and comparing insurers across a larger or complex deal. [3] [6]
Published Capacity vs Diligence Staff
CFC says it can put up to $50 million of limit on one transaction, or up to $150 million of excess cover for certain fundamental representations, writing for Lloyd's syndicates and insurers rated A or better by AM Best. It also offers secondary liquidity solutions for fund-interest transfers. Newfront publishes no limits but says its due-diligence staff work on deal time to find exposures, fixes and cost savings, supported by data analytics. [3] [6]
Tax Cover Inside the Policy vs Separate Placements
CFC's core policy covers representations and warranties, contingent tax and other M&A liabilities. Newfront places tax insurance and contingent-liability insurance as separate policies for hard-to-place risks. If a known tax issue is driving the deal, ask Newfront for a standalone tax quote; with CFC, check what the core form's contingent-tax cover excludes. [3] [6]
What Should You Confirm in CFC and Newfront Representations and Warranties Insurance Quotes?
- Ask Newfront which insurer is quoting, and ask CFC which syndicate or company will issue the policy. [6] [3]
- Ask CFC whether your quote is the core form, a Protect product, excess or a secondaries solution. [3]
- Ask Newfront for its quoted limit and retention, and whether tax or contingent-liability cover is part of the same deal. [3] [6]