CFC vs Founder Shield: How Do They Compare for Representations and Warranties Insurance?

CFC underwrites transaction liability and advertises up to $50 million per deal; Founder Shield brokers with outside carriers and describes buyer-side risks including misstatements and undisclosed tax liabilities.

CFC writes R&W itself with up to $50 million per deal and off-the-shelf Buyer Protect and Seller Protect products for deals under $20 million; Founder Shield is a broker that shops insurers rated A- or better for private equity, strategic buyers and family businesses being sold. ^1,^4,³

What Are the Key Differences Between CFC and Founder Shield Representations and Warranties Insurance?

Small-Deal Products and Published Capacity vs a Broker’s Search

CFC underwrites transaction liability with stated capacity of $50 million per deal plus $150 million of excess for certain fundamental representations, and sells Buyer Protect and Seller Protect as standalone products for deals under $20 million. Founder Shield is a retail broker that places R&W with outside insurers rated A- or better by AM Best, names none of them, and publishes no deal-size limits. Choose CFC if your deal is under $20 million and you want a ready-made product, or if you need large fundamental-rep excess; choose Founder Shield if you want a broker to compare several insurers for a sponsor, strategic or family-business sale. ¹ ⁴ ⁵

Secondaries and Contingent Tax vs Buyer-Side Examples

CFC’s core policy covers representations and warranties, contingent tax and other M&A liabilities, and it also insures secondary transactions where investors move fund interests. Founder Shield gives examples of what its placements cover, mostly for buyers: financial-statement errors, undisclosed tax liabilities, regulatory non-compliance and undisclosed contracts or leases. If you are a fund doing a secondary, only CFC names that cover. ¹ ³

Financial Sponsors and Family Sellers

Founder Shield names private equity and other financial sponsors, strategic buyers, corporate sellers divesting a unit and family-owned businesses. It says premium is typically a percentage of the negotiated limit. CFC writes on behalf of Lloyd’s syndicates and A-rated insurers. ³ ¹

What Should You Confirm in CFC and Founder Shield Representations and Warranties Insurance Quotes?

Ask Founder Shield which insurer it is quoting, and CFC which syndicate or insurer backs your policy. ⁵ ¹
Ask CFC whether you are quoted Buyer Protect, Seller Protect, core transaction liability or secondaries cover. ¹
Ask Founder Shield which of its example misrepresentations the quoted form actually covers. ³
Compare premium as a percentage of limit across both quotes, including any excess layer. ³ ¹

CFC vs Founder Shield Representations and Warranties Compared

CFC vs Founder Shield: Representations and Warranties Insurance: documented features by provider

Criteria	CFC Transaction Liability Insurance	Founder Shield Representations and Warranties 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.	You request Founder Shield Representations and Warranties Insurance through Founder Shield's website or an insurance advisor rather than binding coverage directly; Founder Shield says its placement team then approaches carriers on the client's behalf. ^4,⁵Company-reported. About-us and carrier-selection pages describe the general placement process, not a line-specific application form.
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.	Founder Shield lists financial-statement misstatements, undisclosed tax liabilities, legal or regulatory non-compliance, and undisclosed contracts or leases as the kinds of seller misrepresentations the policy can cover, mostly on the buyer side. ³Company-reported. Product page; the issued policy and declarations control actual coverage.
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.	Founder Shield is a retail insurance brokerage, described on its site as “the innovation arm of The Baldwin Group,” and places Founder Shield Representations and Warranties Insurance with third-party carriers rather than underwriting the policy itself. ⁴Company-reported. About-us page; applies to Founder Shield's brokerage model generally, restated here for this line.
Issuing Insurer	CFC says it underwrites transaction liability business on behalf of Lloyd's of London syndicates and insurance companies rated 'A' or better by AM Best, without naming a specific carrier for any individual deal. ¹Company-reported. Limit & appetite section of the product page; the specific carrier for a given policy would appear on that policy's documents.	Founder Shield says it places policies, including Founder Shield Representations and Warranties Insurance, only with carriers rated A- or better by AM Best, chosen for the client's industry. It does not name the issuing insurer for this line; that depends on which carrier the policy is placed with. ⁵Company-reported. General carrier-selection FAQ, not specific to this line's placements.