What Are the Key Differences Between Lockton and Newfront Representations and Warranties Insurance?
Claims Support After Closing vs Diligence Before It
Lockton says dedicated transaction-liability claims experts stay on after binding and cites hundreds of millions of dollars in RWI claims settled for clients. Newfront's Private Equity & Transaction Advisory Group works as an extension of your deal team, with diligence professionals using technology and data analytics to spot exposures and savings during the deal. Choose Lockton if you expect to lean on your broker when a breach claim arises; choose Newfront if you're a PE buyer who wants help finding risks before you sign. [4] [6]
Escrow Replacement vs Companion Transaction Cover
Lockton frames R&W as replacing or bolstering seller indemnity or escrow, with benefits for both sides, and staffs every deal with a former-M&A-lawyer partner and associate available 24/7. Newfront frames R&W as cover for unknown risks and places tax and contingent-liability insurance for known, hard-to-place issues; you start with a consultation form. [4] [6] [5]
What Should You Confirm in Lockton and Newfront Representations and Warranties Insurance Quotes?
- Ask Lockton who your partner, associate and post-bind claims expert will be. [4]
- Ask Newfront whether tax or contingent-liability cover is quoted with R&W and which insurers it will approach. [6]
- Ask both whether the policy is meant to replace escrow in your purchase agreement. [4] [6]
- Get limits, retentions and the insurer from both; neither publishes them. [4] [6]