What Are the Key Differences Between CFC and USI Insurance Services Representations and Warranties Insurance?
Stated Underwriting Capacity vs a Broker’s Placement
CFC underwrites R&W and says it can write $50 million on a transaction plus $150 million of excess on certain fundamental representations. USI doesn’t underwrite; its Private Equity practice places R&W with an insurer it doesn’t name and publishes no limits, so you see capacity only in the quote. Choose CFC if you need large or fast capacity from the insurer itself; choose USI if you’re a private-equity firm that wants a broker to review the deal and handle the target’s insurance afterward. [3] [5]
Document Review vs 24-Hour Small-Deal Cover
USI reads the offering memorandum and purchase-and-sale agreement to flag issues and define pre-closing liabilities. CFC doesn’t describe document review; instead it offers Buyer Protect and Seller Protect for deals under $20 million, which it says can be placed within 24 hours, even after closing. [5] [3]
Ongoing Insurance Service vs a Dedicated Claims Team
After close, USI has a local team oversee the acquired company’s insurance and benefits. CFC has a dedicated transaction-liability claims team in London and New York. USI helps you run the business you bought; CFC handles the R&W claim if a representation turns out false. [5] [3]
What Should You Confirm in CFC and USI Insurance Services Representations and Warranties Insurance Quotes?
- Ask USI which insurer it proposes, and ask CFC which Lloyd’s syndicate or A-rated insurer backs your policy. [5] [3]
- Ask USI how its document review shapes the R&W submission. [5]
- Ask CFC whether it’s quoting Buyer Protect, Seller Protect, core capacity or excess. [3]
- Compare USI’s quoted limits with CFC’s $50 million and $150 million figures. [3] [5]