What Are the Key Differences Between Chubb and Lockton Representations and Warranties Insurance?
Direct Insurer vs Broker Team of Former M&A Lawyers
Chubb writes R&W itself and pays financial losses, including defense costs, above a retention for certain unintentional and unknown breaches of the seller's representations. Lockton's RWI practice is a broker staffed by former M&A lawyers and transaction advisors, with a Partner/Associate model and 24/7 coverage on every deal, and doesn't name the insurers it uses. Lockton says dedicated transaction-liability claims experts stay involved after binding; Chubb's page doesn't describe a separate post-bind claims team. Choose Chubb if your counsel wants to deal directly with one insurer; choose Lockton if you want deal lawyers comparing insurers and backing you if a breach claim arises. [4] [6]
Seller Exit and Auction Benefits Framed Differently
Lockton says RWI replaces or bolsters seller indemnity or escrow. For sellers, that means faster proceeds, less post-closing exposure and no personal guarantee; for buyers, broader protection, faster negotiation and no conflict when the seller stays in the business. Chubb stresses buyer-side advantages in auctions and in collecting on a claim, and seller-side cover for funds at the end of their life and minority sellers. [6] [4]
What Should You Confirm in Chubb and Lockton Representations and Warranties Insurance Quotes?
- Ask Lockton which insurer would issue the RWI policy, and ask Chubb which Chubb company issues its policy. [6] [4]
- Ask whether the policy replaces escrow or sits above a retention alongside remaining seller indemnity. [6] [4]
- Ask Lockton who receives claims notice and who advocates for you after a breach allegation. [6]
- Compare limit, retention and whether defense costs reduce the limit. [4] [6]