What Are the Key Differences Between Lockton and USI Insurance Services Representations and Warranties Insurance?
Dedicated R&W Lawyers vs One Offering in a PE Practice
Both are brokers and neither names the insurer. Lockton runs a dedicated R&W practice staffed by former M&A lawyers and transaction advisors on a partner/associate model with 24/7 coverage. USI lists R&W solutions for uninsured risk among several private equity offerings, with no dedicated R&W staffing described. Choose Lockton if the deal is complex or contested and you want R&W specialists negotiating wording and claims; choose USI if you are a PE firm that wants R&W alongside document review and ongoing insurance service for the portfolio company. [4] [5]
Escrow Replacement vs Pre-Closing Document Review
Lockton describes R&W as a way to replace or bolster a seller’s indemnity or escrow, with separate benefit lists for sellers and buyers. USI ties R&W to reviewing the offering memorandum and purchase agreement to spot pre-closing liabilities, for PE buyers and sellers working with financial or strategic buyers. [4] [5]
Claims Recovery vs Post-Close Servicing
Lockton says its transaction-liability claims experts stay involved after you buy and have helped clients settle hundreds of millions of dollars of R&W claims. USI keeps a local team servicing the acquired company’s insurance and benefits after close, with benchmarking and total-cost-of-risk analysis, reachable through a private-equity inquiry address or local office. If you expect to claim, Lockton has the stronger stated record. [4] [5]
What Should You Confirm in Lockton and USI Insurance Services Representations and Warranties Insurance Quotes?
- Ask Lockton how the policy would replace escrow on your deal and who your claims expert will be. [4]
- Ask USI how its document review feeds the R&W application. [5]
- Ask USI whether its post-close team handles an R&W claim or only the company’s ongoing insurance. [5]
- Get the insurer, limit and retention from both. [4] [5]