What Are the Key Differences Between Chubb and Gallagher Representations and Warranties Insurance?
Insurer’s Own Deal Team vs Broker Attorneys and Custom Forms
Chubb underwrites R&W itself, quoting through its transactional-risk team with the deal parties and their brokers, and lists it among specialty coverages for large US and Canadian multinationals. Gallagher places R&W with outside insurers it doesn’t name, and says dedicated attorneys handle analysis, custom policy forms and pre-transaction diligence from start to finish. Choose Chubb if you are a large multinational buyer or seller who wants a known insurer’s standard terms; choose Gallagher if you are doing a SPAC or de-SPAC, or want a broker to negotiate bespoke wording across insurers. [4] [3] [6]
Published Buyer and Seller Benefits vs Tax Cover on a Custom Form
For buyers, Chubb says R&W extends protection beyond the negotiated indemnity cap and survival period, protects against a seller who can’t pay, and helps you win auctions by accepting shorter survival and lower caps. For sellers, it backstops indemnity for funds winding down and protects minority or passive sellers from joint and several liability. Gallagher covers both buyers and sellers and adds tax-mitigation cover, but you’ll only see how it handles caps, survival and collectability on its custom form. [4] [6]
SPAC Bundle vs Multinational Suite
Gallagher bundles R&W with D&O across a SPAC’s IPO and de-SPAC combination, so one team handles both. Chubb doesn’t describe a SPAC package and publishes no minimum deal size, so ask whether your deal fits its multinational suite. [3] [6]
What Should You Confirm in Chubb and Gallagher Representations and Warranties Insurance Quotes?
- Ask Gallagher which insurer and form it is quoting. [6] [4]
- For a SPAC or de-SPAC, ask Gallagher how R&W and D&O limits fit together. [6]
- Compare indemnity cap, survival and seller-solvency terms on both forms. [4] [6]
- Get limit, retention and tax-mitigation terms in writing from both; neither publishes them. [4] [6]