What Are the Key Differences Between Founder Shield and Lockton Representations and Warranties Insurance?
Deal Lawyers and Post-Closing Claims Help vs an Insurer Rating Floor
Both are brokers. Lockton staffs each deal with a partner and an associate from former M&A lawyers and transaction advisors, available 24/7, and says dedicated transaction-liability claims experts stay with you after binding; it reports helping clients settle hundreds of millions of dollars of RWI claims. Founder Shield, part of The Baldwin Group, places R&W only with insurers rated A- or better by AM Best, matched to your industry, and describes no post-closing claims desk. Choose Lockton if you expect to rely on your broker when a breach claim comes; choose Founder Shield if insurer financial strength is your main screen. [7] [5] [4]
Concrete Breach Examples vs Escrow Replacement
Founder Shield lists what the policy typically pays for, mostly on the buyer side: misstated financials, undisclosed tax, legal or regulatory non-compliance, and undisclosed contracts or leases. Lockton frames RWI as replacing or topping up a seller indemnity or escrow, and splits benefits: sellers get proceeds sooner, buyers get broader protection and faster negotiations. [6] [7]
What Should You Confirm in Founder Shield and Lockton Representations and Warranties Insurance Quotes?
- Ask both which insurer they propose, and whether Lockton’s choice is rated A- or better. [5] [7]
- Ask whether the policy replaces escrow and whether it names specific breach types. [7] [6]
- Ask Founder Shield who helps you if you need to file a claim after closing. [5] [7]
- Get premium as a percentage of limit and the retention from both. [6] [7]