---
title: "CFC vs Founder Shield Representations and Warranties Insurance"
description: "CFC underwrites R&W with stated $50 million capacity; Founder Shield places A-rated carrier paper as Baldwin Group’s brokerage."
canonical: "https://spot.insure/compare/cfc-vs-foundershield/representations-warranties"
page-type: "line-comparison"
updated-at: "2026-09-23"
---

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# CFC vs Founder Shield Representations and Warranties Insurance

CFC underwrites R&W with stated $50 million capacity; Founder Shield places A-rated carrier paper as Baldwin Group’s brokerage.

## Research Scope and Use

Use this comparison to evaluate CFC and Founder Shield for Representations and Warranties Insurance against the same documented criteria. It identifies differences and questions to confirm; it does not select a winner for a particular business. Offering claims are what each provider publishes about this line unless marked otherwise. “Not found” describes the evidence reviewed, not proof that a feature is unavailable. Confirm the insurer, policy wording, limits, retentions, exclusions and cost in an actual quote.

## Summary

CFC underwrites transaction liability, including sub-$20 million Buyer Protect and Seller Protect products. Founder Shield places R&W with third-party carriers rated A- or better and markets it to sponsors, strategics and family sellers. [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") [12](https://foundershield.com/about-us/ "About Us") [11](https://foundershield.com/coverage/representations-warranties-insurance/ "Representations and Warranties Insurance")

## What Is CFC Insurance?

CFC provides specialty insurance through an MGA model, with technology products for startups through multinational businesses. Its U.S. technology materials describe combined liability and cyber protection, while California eligibility requires product-specific confirmation. [1](https://www.cfc.com/en-us/company/ "About CFC") [2](https://www.cfc.com/en-us/products/industry/technology/ "Technology") [3](https://webcdn.cfc.com/media/ywdbvkpy/technology_product-brochure_us_0525_v2.pdf "Technology — United States product brochure") [4](https://www.cfc.com/en-us/support/regulatory-information/ "Regulatory information")

[CFC profile](https://spot.insure/insurance-providers/cfc)

## What Is Founder Shield Insurance?

Founder Shield is a commercial insurance broker for venture-backed and growing businesses. Buyers can request coverage through its online portal and work with advisors on insurer selection, policy changes and claims reporting. [6](https://foundershield.com/ "Founder Shield") [7](https://apx.foundershield.com/ "Quote Portal") [8](https://foundershield.com/insurance-faqs/general-faqs/how-do-you-decide-which-carriers-to-approach/ "How Do You Decide Which Carriers to Approach?") [9](https://foundershield.com/insurance-faqs/general-faqs/what-if-our-company-grows-a-lot-or-things-change-during-the-year/ "What If Our Company Grows A Lot or Things Change During the Year?") [10](https://foundershield.com/claims/ "Claims")

[Founder Shield profile](https://spot.insure/insurance-providers/foundershield)

## What Is Representations and Warranties Insurance?

Representations and warranties insurance addresses financial loss from inaccuracies in the representations or warranties made in a stock or asset purchase agreement. It doesn't cover issues already known before signing, disputes over the purchase price, or every statement made during diligence. [13](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance") [14](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions "Mergers & Acquisitions")

## Key Differences in Representations and Warranties Insurance

### Who Issues the Policy

CFC underwrites R&W on behalf of Lloyd’s syndicates and A-rated insurers, with stated capacity of $50 million on a transaction and $150 million of excess for certain fundamental representations. Founder Shield is a retail brokerage (the innovation arm of The Baldwin Group) that places this line with third-party carriers rated A- or better by AM Best and does not name the issuer until placement. [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") [12](https://foundershield.com/about-us/ "About Us") [8](https://foundershield.com/insurance-faqs/general-faqs/how-do-you-decide-which-carriers-to-approach/ "How Do You Decide Which Carriers to Approach?")

### Who Each Product Is Built For

CFC presents Buyer Protect and Seller Protect as standalone small-deal products limited to transactions under $20 million, plus secondary-liquidity cover for investors moving fund interests. Founder Shield markets R&W to private equity and other financial sponsors, strategic buyers, corporate sellers of a business unit, and family-owned businesses being sold, without a published deal-size cap. [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") [11](https://foundershield.com/coverage/representations-warranties-insurance/ "Representations and Warranties Insurance")

### What the Coverage Description Names

Founder Shield lists financial-statement misstatements, undisclosed tax liabilities, legal or regulatory non-compliance, and undisclosed contracts or leases as examples of seller misrepresentations, mostly on the buyer side. CFC describes a core policy covering representations and warranties, contingent tax, and other M&A liabilities, with excess available on certain fundamentals; it does not use that same example list. [11](https://foundershield.com/coverage/representations-warranties-insurance/ "Representations and Warranties Insurance") [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC")

## What to Confirm in Representations and Warranties Insurance Quotes

- Identify the issuing carrier on Founder Shield’s placement and the syndicate or company on CFC’s policy. [8](https://foundershield.com/insurance-faqs/general-faqs/how-do-you-decide-which-carriers-to-approach/ "How Do You Decide Which Carriers to Approach?") [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC")
- Ask CFC whether the quote is Buyer Protect, Seller Protect, core transaction liability, or secondaries, given the $20 million small-deal cap. [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC")
- Ask Founder Shield which of the listed misrepresentation types the carrier’s form actually insures on this deal. [11](https://foundershield.com/coverage/representations-warranties-insurance/ "Representations and Warranties Insurance")
- Compare premium as a percentage of limit (Founder Shield’s description) with CFC’s stated capacity figures and any excess layer. [11](https://foundershield.com/coverage/representations-warranties-insurance/ "Representations and Warranties Insurance") [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC")

## Offering Details

| Criteria | CFC Transaction Liability Insurance | Founder Shield Representations and Warranties Insurance |
| --- | --- | --- |
| 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. [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") (Evidence: Company-reported; scope: 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. [12](https://foundershield.com/about-us/ "About Us") (Evidence: Company-reported; scope: 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. [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") (Evidence: Company-reported; scope: 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. [8](https://foundershield.com/insurance-faqs/general-faqs/how-do-you-decide-which-carriers-to-approach/ "How Do You Decide Which Carriers to Approach?") (Evidence: Company-reported; scope: General carrier-selection FAQ, not specific to this line's placements..) |
| Who It’s For | Not described in the reviewed sources. | Founder Shield markets R&W insurance to private equity and other financial sponsors, strategic buyers, corporate sellers divesting a business unit, and family-owned businesses being sold. [11](https://foundershield.com/coverage/representations-warranties-insurance/ "Representations and Warranties Insurance") (Evidence: Company-reported; scope: Representations and Warranties Insurance product page..) |
| 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. [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") (Evidence: Company-reported; scope: 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..)<br><br>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. [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") (Evidence: Company-reported; scope: Product page key features and the 'Limit & appetite' section; exact terms are set by the policy as issued..)<br><br>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. [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") (Evidence: Company-reported; scope: 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. [11](https://foundershield.com/coverage/representations-warranties-insurance/ "Representations and Warranties Insurance") (Evidence: Company-reported; scope: Product page; the issued policy and declarations control actual coverage..) |
| Limits and Retentions | CFC says it can underwrite up to $50 million of limit on a single transaction, or up to $150 million of excess coverage for certain fundamental representations. [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") (Evidence: Company-reported; scope: Limit & appetite section of the product page..) | Founder Shield's page does not publish specific limit figures; it says premiums are typically a percentage of the negotiated policy limit, which is set per transaction. [11](https://foundershield.com/coverage/representations-warranties-insurance/ "Representations and Warranties Insurance") (Evidence: Not publicly disclosed; scope: Representations and Warranties Insurance product page, checked 2026-09-23..) |
| 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. [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") (Evidence: Company-reported; scope: 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. [12](https://foundershield.com/about-us/ "About Us") [8](https://foundershield.com/insurance-faqs/general-faqs/how-do-you-decide-which-carriers-to-approach/ "How Do You Decide Which Carriers to Approach?") (Evidence: Company-reported; scope: About-us and carrier-selection pages describe the general placement process, not a line-specific application form..) |
| Claims Support | CFC has a dedicated transaction liability claims team in its London and New York offices, says it has handled nearly 300 claims to date, and aims to send an acknowledgement within 24 hours of a claim notification. [5](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") (Evidence: Company-reported; scope: Claims section of the product page; outcome statistics are company-reported and not independently verified..) | Not described in the reviewed sources. |

## Full Comparison

- [CFC vs Founder Shield](https://spot.insure/compare/cfc-vs-foundershield): all coverage lines, business roles, service and claims.
- [What Is Representations and Warranties Insurance?](https://spot.insure/coverage/representations-warranties): Representations and warranties insurance addresses financial loss from inaccurate statements in a business purchase agreement.
- [CFC vs Founder Shield Commercial Property Insurance](https://spot.insure/compare/cfc-vs-foundershield/commercial-property)
- [CFC vs Founder Shield Crime Insurance](https://spot.insure/compare/cfc-vs-foundershield/crime)
- [CFC vs Founder Shield Cyber Insurance](https://spot.insure/compare/cfc-vs-foundershield/cyber)
- [CFC vs Founder Shield D&O Insurance](https://spot.insure/compare/cfc-vs-foundershield/directors-officers)
- [CFC vs Founder Shield Employment Practices Liability Insurance](https://spot.insure/compare/cfc-vs-foundershield/employment-practices)
- [CFC vs Founder Shield General Liability Insurance](https://spot.insure/compare/cfc-vs-foundershield/general-liability)
- [CFC vs Founder Shield Intellectual Property Insurance](https://spot.insure/compare/cfc-vs-foundershield/intellectual-property)
- [CFC vs Founder Shield Media Liability Insurance](https://spot.insure/compare/cfc-vs-foundershield/media)
- [CFC vs Founder Shield Product Liability Insurance](https://spot.insure/compare/cfc-vs-foundershield/product-liability)
- [CFC vs Founder Shield Professional Liability (E&O) Insurance](https://spot.insure/compare/cfc-vs-foundershield/professional-errors-omissions)
- [CFC vs Founder Shield Telehealth Insurance](https://spot.insure/compare/cfc-vs-foundershield/virtual-care-telehealth)
- [CFC vs Founder Shield Umbrella and Excess Liability Insurance](https://spot.insure/compare/cfc-vs-foundershield/umbrella-excess)
- [Beazley vs CFC Representations and Warranties Insurance](https://spot.insure/compare/beazley-vs-cfc/representations-warranties)
- [Beazley vs Founder Shield Representations and Warranties Insurance](https://spot.insure/compare/beazley-vs-foundershield/representations-warranties)
- [CFC vs Chubb Representations and Warranties Insurance](https://spot.insure/compare/cfc-vs-chubb/representations-warranties)
- [CFC vs Corgi Representations and Warranties Insurance](https://spot.insure/compare/cfc-vs-corgi/representations-warranties)
- [CFC vs Coverdash Representations and Warranties Insurance](https://spot.insure/compare/cfc-vs-coverdash/representations-warranties)
- [CFC vs Gallagher Representations and Warranties Insurance](https://spot.insure/compare/cfc-vs-gallagher/representations-warranties)

## Sources

### CFC

1. [About CFC](https://www.cfc.com/en-us/company/). CFC; Matt Taylor biography: independent MGA and Syndicate 1988. Accessed 2026-09-16.
2. [Technology](https://www.cfc.com/en-us/products/industry/technology/). CFC; Introduction; Technology key features; Digitally traded. Accessed 2026-09-16.
3. [Technology — United States product brochure](https://webcdn.cfc.com/media/ywdbvkpy/technology_product-brochure_us_0525_v2.pdf). CFC; Page 1: coverage sections, including Products and services liability; Response app highlights; Limits and deductibles. Accessed 2026-09-16.
4. [Regulatory information](https://www.cfc.com/en-us/support/regulatory-information/). CFC; CFC Underwriting Limited; CFC Lloyd's Syndicate 1988. Accessed 2026-09-23.
5. [Transaction liability insurance | Representation and indemnities insurance | CFC](https://www.cfc.com/en-us/products/class/transaction-liability/). CFC; Transaction liability / Seller protect / Buyer protect / Secondary liquidity solutions; Why choose CFC: Solutions, Experience, Limit & appetite, Claims; FAQs. Accessed 2026-09-23.

### Founder Shield

6. [Founder Shield](https://foundershield.com/). Founder Shield; Opening broker description; Specialized Practices; Smart Tech, Smarter People; quote and sign-in links. Accessed 2026-09-15.
7. [Quote Portal](https://apx.foundershield.com/). Founder Shield; Public landing screen, Create Account and Sign In links. Accessed 2026-09-15.
8. [How Do You Decide Which Carriers to Approach?](https://foundershield.com/insurance-faqs/general-faqs/how-do-you-decide-which-carriers-to-approach/). Founder Shield; FAQ answer on carrier selection: works exclusively with A-rated (AM Best) carriers, matched by industry appetite. Accessed 2026-09-23.
9. [What If Our Company Grows A Lot or Things Change During the Year?](https://foundershield.com/insurance-faqs/general-faqs/what-if-our-company-grows-a-lot-or-things-change-during-the-year/). Founder Shield; Carl Niedbala answer, November 25, 2024: operational changes and coverage adjustments. Accessed 2026-09-15.
10. [Claims](https://foundershield.com/claims/). Founder Shield; Our Approach; How We Support Claims Management, steps 1–5; Make a claim link. Accessed 2026-09-15.
11. [Representations and Warranties Insurance](https://foundershield.com/coverage/representations-warranties-insurance/). Founder Shield; What Is Reps & Warranties Insurance?; Who Needs Reps & Warranties Insurance Coverage?; What Does Reps & Warranties Insurance Cover?. Accessed 2026-09-23.
12. [About Us](https://foundershield.com/about-us/). Founder Shield; “Founder Shield is the innovation arm of The Baldwin Group”; company history and mission. Accessed 2026-09-23.

### Representations and Warranties Insurance Guide

13. [Transaction liability insurance | Representation and indemnities insurance](https://www.cfc.com/en-us/products/class/transaction-liability/). CFC; What are representations and warranties?; Who should buy representation and warranty insurance?; Available to buyers & sellers; Limited seller security; Is transaction liability insurance available to sellers. Accessed 2026-09-16.
14. [Mergers & Acquisitions](https://www.beazley.com/en-us/products/executive-risk-usa/mergers-acquisitions). Beazley; Product overview: buyer and seller protection for inaccuracies in representations or warranties. Accessed 2026-09-16.

Updated 2026-09-23. Spot, a product of Tools for Enlightenment, publishes this research and works in the commercial insurance market. The comparison applies the same criteria to both providers. [Editorial policy](https://spot.insure/editorial-policy). To suggest a correction, [contact Spot](https://spot.insure/contact) with the page URL and supporting source.

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