What Are the Key Differences Between Chubb and USI Insurance Services Representations and Warranties Insurance?
Seller Protection From the Insurer vs Deal Review From a Broker
Chubb writes R&W for either side of a deal and says its seller-side cover backstops negotiated indemnity for private-equity or venture funds at the end of their life, and protects minority or passive sellers worried about joint and several liability. USI's Private Equity practice brokers R&W for private-equity buyers and sellers, reviewing the offering memorandum and purchase agreement to find pre-closing liabilities, and doesn't name its R&W insurers. Choose Chubb if you're a fund winding down or a minority seller who needs your exposure capped; choose USI if you're a PE buyer that wants document review and a broker for the portfolio company. [4] [6]
One Policy vs Post-Close Service
USI says a local team oversees the acquired company's insurance and benefits after closing, with benchmarking and total-cost-of-risk analysis. Chubb quotes R&W through its transactional-risk team and describes nothing after the deal closes. If you'll own the target, USI keeps the same broker on its program; with Chubb you'll need someone else for that work. [6] [4]
What Should You Confirm in Chubb and USI Insurance Services Representations and Warranties Insurance Quotes?
- Ask USI which insurer would write your R&W, and whether Chubb is one of them. [4] [6]
- If you're a fund at end of life or a minority seller, ask how each proposal structures seller-side cover. [4]
- Ask USI how its offering-memorandum and purchase-agreement findings reach the underwriter. [6]
- Ask both for retention and limit. [4] [6]