What Are the Key Differences Between Coverdash and Founder Shield Representations and Warranties Insurance?
Three Transaction Products vs an A-Rated Insurer Promise
Both are brokers. Coverdash quotes R&W from an insurer panel it doesn’t name, as one of three transactional-risk products alongside tax liability and contingent liability. Founder Shield places R&W only with insurers rated A- or better by AM Best, matched to your industry, after you apply online or through an advisor. Choose Coverdash if your deal also carries tax or contingent exposures; choose Founder Shield if insurer financial strength matters to your investors or counterparty. [3] [4] [5]
Escrow Replacement vs Concrete Breach Examples
Coverdash says either side can buy, that buy-side policies are more common because the buyer recovers directly from the insurer, and that R&W can reduce or replace escrow and holdbacks, freeing up sale proceeds. Founder Shield lists what the policy typically pays for: misstated financials, undisclosed tax, legal or regulatory non-compliance, and undisclosed contracts or leases. [3] [6]
Named Deal Types and Pricing Basis
Coverdash markets to buyers, sellers and investors in mergers, acquisitions and private equity. Founder Shield names private equity and other sponsors, strategic buyers, corporate sellers of a unit and family-owned businesses being sold, and says premiums are usually a percentage of the negotiated limit. Neither publishes limits. [3] [6]
What Should You Confirm in Coverdash and Founder Shield Representations and Warranties Insurance Quotes?
- Ask both which insurer they propose. [3] [5]
- Ask Coverdash whether your quote is buy-side or sell-side and how much escrow it lets you drop. [3]
- Check that financial-statement, tax, compliance and undisclosed-contract breaches are in the quoted wording. [6]
- Get limit, retention and premium as a percentage of limit from both. [6] [3]