CFC vs 
Chubb: How Do They Compare for Representations and Warranties Insurance?
CFC underwrites transaction liability and offers up to $50 million per deal plus smaller Buyer Protect and Seller Protect products; Chubb underwrites R&W for buyer or seller against unknown breaches and defense costs.
CFC covers more deal sizes in public: up to $50 million per transaction, $150 million excess for certain fundamental representations, and Buyer Protect and Seller Protect for deals under $20 million, placeable after closing. Chubb writes buyer- and seller-side R&W for large US and Canadian multinationals but publishes no limit or retention. 1,3
What Are the Key Differences Between CFC and Chubb Representations and Warranties Insurance?
Small-Deal Products and Published Capacity vs Large-Multinational Focus
CFC says it can underwrite up to $50 million on one transaction or up to $150 million of excess for certain fundamental representations, and it sells Buyer Protect and Seller Protect for deals under $20 million. It works with private equity firms and strategic buyers and sellers. Chubb's R&W sits in its transactional-risk suite for large US and Canadian multinationals and their brokers, with no published limit, retention or minimum deal size. Choose CFC if your deal is under $20 million or you need excess above a primary R&W policy; choose Chubb if you're a large multinational and its team already covers you. 1 4 3
Cover in 24 Hours, Even After Closing vs Deal-by-Deal Negotiation
CFC says Buyer Protect can cover a buyer for up to 100% of enterprise value and can be placed within 24 hours of application, including after closing. Chubb says its policy responds above a retention for certain unintentional and unknown breaches, including defense costs, and negotiates each deal individually. If you've already signed or closed without R&W, CFC documents a way to add it. 1 3
Contingent Tax Included vs Auction Strategy and Seller Backstop
CFC's core policy covers representations and warranties, contingent tax and other M&A liabilities. Chubb pitches buyer-side cover as protection beyond the indemnity cap and survival period, against a seller that can't pay, and as a way to accept a shorter survival and lower cap in an auction; its seller-side cover backstops the indemnity for PE or VC funds winding down and for minority sellers. 1 3
What Should You Confirm in CFC and Chubb Representations and Warranties Insurance Quotes?
- Ask CFC whether you're quoted on its main R&W policy, Buyer Protect, Seller Protect or fundamental-representation excess. 1
- Ask Chubb for the retention, limit and whether the form is buyer- or seller-side. 3
- Ask which company issues each policy: whether CFC's is a Lloyd's policy or company-issued, and which Chubb entity would issue. 1 3
- Check whether your deal size falls under CFC's $20 million Protect threshold. 1
CFC vs Chubb Representations and Warranties Insurance Compared
CFC vs Chubb: Representations and Warranties Insurance: documented features by provider
| Criteria | CFC Transaction Liability Insurance | Chubb Representations and Warranties (R&W) Insurance |
|---|---|---|
| How to Apply | For the Buyer Protect and Seller Protect products, CFC says coverage can be placed within 24 hours of receiving the application form, and can be arranged after closing. 1Company-reported. Buyer protect and seller protect key features on the product page. | R&W insurance is placed through Chubb's transactional risk team working with the deal's buyer, seller and their brokers; the product page directs interested businesses to request a quote. 3Company-reported. R&W Insurance product page quote call-to-action. |
| Coverage Features | Beyond its main R&W policy, CFC sells two standalone small-deal products: Buyer Protect, described as covering a buyer for up to 100% of enterprise value, and Seller Protect, described as protecting sellers of small businesses during an M&A transaction. Both are limited to deals under $20 million. 1Company-reported. Product page descriptions and the 'Solutions' section, which caps buyer protect/seller protect at deals under $20m. The page's key-features bullets for these two products use near-identical wording about the buyer bringing a claim, so the exact difference in claims mechanics between the two products was not independently confirmable from this page alone. The core transaction liability policy covers representations and warranties, contingent tax, and other M&A liabilities, and CFC also offers excess coverage layered on top for certain fundamental representations. 1Company-reported. Product page key features and the 'Limit & appetite' section; exact terms are set by the policy as issued. CFC separately offers secondary liquidity solutions for private market investors acquiring, divesting, or restructuring interests in private equity, private credit, or other fund assets, through what it calls a dedicated secondaries underwriting practice. 1Company-reported. Secondary liquidity solutions section of the product page. | Chubb says the policy protects against financial losses, including defense costs, in excess of a retention, for certain unintentional and unknown breaches of the seller's representations and warranties made in the acquisition or merger agreement. 3Company-reported. R&W Insurance product page opening description and footnote. For buyer-side policies, Chubb lists benefits including protection beyond the negotiated indemnity cap and survival limitations, protection against a seller's collectability or solvency risk, and support for distinguishing a bid in a competitive auction by requiring shorter survival periods and lower liability caps from the seller. 3Company-reported. Benefits of a Buyer-Side R&W Insurance Policy section. For seller-side policies, Chubb says the coverage backstops negotiated indemnity obligations, which it calls a key benefit for private equity or venture capital funds at the end of their life cycle, and protects minority or passive sellers concerned about joint and several liability. 3Company-reported. Benefits of a Seller-Side R&W Insurance Policy section. |
| Role in This Line | CFC's Transaction Liability practice underwrites representations and warranties (R&W) insurance for M&A deals, available to both buyer-side and seller-side purchasers, alongside standalone small-deal products and secondary liquidity solutions. 1Company-reported. Transaction liability product page overview, describing CFC as a deal facilitator working with private equity firms and strategic buyers and sellers. | Chubb underwrites representations and warranties (R&W) insurance directly, available to either buyers or sellers in an acquisition or merger transaction. 3Company-reported. R&W Insurance product page. |
