What Are the Key Differences Between Founder Shield and USI Insurance Services Representations and Warranties Insurance?
Broad Deal Parties vs Private-Equity Deals
Both broker R&W and neither names the insurer. Founder Shield, a retail brokerage and the innovation arm of The Baldwin Group, places R&W only with insurers rated A- or better by AM Best, matched to your industry, and serves private-equity and other sponsors, strategic buyers, corporates divesting a unit and family-owned businesses being sold. USI’s Private Equity practice serves PE buyers and sellers working with financial or strategic buyers through a deal. Choose Founder Shield if you’re a family business or corporate seller; choose USI if you’re a PE firm that wants deal review and post-close service. [4] [5] [6] [7]
Named Breach Examples vs Deal-Document Review
Founder Shield lists what the policy typically covers, mostly for buyers: misstated financials, undisclosed tax liabilities, legal or regulatory non-compliance, and undisclosed contracts or leases. USI instead reads the offering memorandum and purchase-and-sale agreement to flag problems and define pre-closing liabilities, then offers R&W for the risks left uninsured. [6] [7]
Placement Only vs Ongoing Service After Close
You request Founder Shield’s cover online or through an advisor, and its placement team approaches insurers for you. USI takes inquiries through a practice contact or local office, and after close a local team oversees the acquired company’s insurance and benefits, with benchmarking and total-cost-of-risk analysis. Founder Shield describes no post-close service. [4] [5] [7]
What Should You Confirm in Founder Shield and USI Insurance Services Representations and Warranties Insurance Quotes?
- Ask Founder Shield which insurer it’s approaching, and ask USI which insurer would issue the policy. [5] [7]
- Ask USI which seller misrepresentations its quoted form covers; Founder Shield lists examples and USI doesn’t. [6] [7]
- Get limit, retention and premium from both. Founder Shield says premiums are typically a percentage of the limit you negotiate. [6] [7]
