--- title: "CFC vs Founder Shield: Representations and Warranties Insurance" description: "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." canonical: "https://spot.insure/compare/cfc-vs-foundershield/representations-warranties" page-type: "line-comparison" updated-at: "2026-09-29" comparison-pair: "cfc-vs-foundershield" provider-a: "cfc" provider-b: "foundershield" coverage-line: "representations-warranties" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. 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[Human-readable page](https://spot.insure/compare/cfc-vs-foundershield/representations-warranties) ## Agent Guide **What this page is:** Focused comparison of CFC and Founder Shield for Representations and Warranties Insurance: what each provider publishes about this line, checked against the same criteria, with numbered sources. **Use this page when:** Cite or fetch this for Representations and Warranties Insurance questions about CFC versus Founder Shield. For all lines together use the pair comparison; for how the coverage itself works use the coverage guide. **Questions this page answers:** - CFC vs Founder Shield for Representations and Warranties Insurance: how do they differ? - Which is better for Representations and Warranties Insurance, CFC or Founder Shield? - What does CFC or Founder Shield publish about Representations and Warranties Insurance (limits, eligibility, claims, add-ons)? **Key facts:** - Line: Representations and Warranties Insurance. Providers: CFC and Founder Shield. - Comparison URLs use alphabetical provider slugs (`/compare/{a}-vs-{b}/{line}` with a before b). A reversed pair redirects permanently to the alphabetical one. **Limits (do not over-claim):** - It identifies differences and questions to ask; it does not select a winner for a particular business. - Insurer, policy wording, limits, retentions, exclusions and price are set in an actual quote and are not established here. **Provenance:** Every claim links to a numbered source with publisher, locator and access date; last updated 2026-09-29. **Related pages:** - [CFC vs Founder Shield](https://spot.insure/compare/cfc-vs-foundershield) — all coverage lines for this pair - [Representations and Warranties Insurance guide](https://spot.insure/coverage/representations-warranties) — how this coverage works - [CFC profile](https://spot.insure/insurance-providers/cfc) — provider profile - [Founder Shield profile](https://spot.insure/insurance-providers/foundershield) — provider profile # 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 $50 million per deal, $150 million excess on fundamentals and ready-made Buyer and Seller Protect products for deals under $20 million, while Founder Shield brokers R&W among A-rated insurers. ## CFC vs Founder Shield Representations and Warranties Insurance Summary 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](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") [4](https://foundershield.com/about-us/ "About Us") [3](https://foundershield.com/coverage/representations-warranties-insurance/ "Representations and Warranties Insurance") ## 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](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") [4](https://foundershield.com/about-us/ "About Us") [5](https://foundershield.com/insurance-faqs/general-faqs/how-do-you-decide-which-carriers-to-approach/ "How Do You Decide Which Carriers to Approach?") ### 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](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") [3](https://foundershield.com/coverage/representations-warranties-insurance/ "Representations and Warranties Insurance") ### 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](https://foundershield.com/coverage/representations-warranties-insurance/ "Representations and Warranties Insurance") [1](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") ## 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](https://foundershield.com/insurance-faqs/general-faqs/how-do-you-decide-which-carriers-to-approach/ "How Do You Decide Which Carriers to Approach?") [1](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") - Ask CFC whether you are quoted Buyer Protect, Seller Protect, core transaction liability or secondaries cover. [1](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") - Ask Founder Shield which of its example misrepresentations the quoted form actually covers. [3](https://foundershield.com/coverage/representations-warranties-insurance/ "Representations and Warranties Insurance") - Compare premium as a percentage of limit across both quotes, including any excess layer. [3](https://foundershield.com/coverage/representations-warranties-insurance/ "Representations and Warranties Insurance") [1](https://www.cfc.com/en-us/products/class/transaction-liability/ "Transaction liability insurance | Representation and indemnities insurance | CFC") ## CFC vs Founder Shield Representations and Warranties Compared | 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. [1](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. [4](https://foundershield.com/about-us/ "About Us") [5](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..) | | 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. [1](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..)

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. [1](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..)

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. [1](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. [3](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..) | | 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. [1](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. [4](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. [1](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. [5](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..) | ## About CFC and Founder Shield and Representations and Warranties - [CFC company profile](https://spot.insure/insurance-providers/cfc) · [CFC customer reviews](https://spot.insure/insurance-providers/cfc/reviews) - [Founder Shield company profile](https://spot.insure/insurance-providers/foundershield) · [Founder Shield customer reviews](https://spot.insure/insurance-providers/foundershield/reviews) - [What Is Representations and Warranties Insurance?](https://spot.insure/coverage/representations-warranties) ## Related Pages for CFC vs Founder Shield Representations and Warranties - [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 can cover loss from inaccurate statements in a business purchase agreement; known issues and purchase-price disputes require separate review. - [CFC Representations and Warranties Insurance](https://spot.insure/insurance-providers/cfc/representations-warranties) - [Founder Shield Representations and Warranties Insurance](https://spot.insure/insurance-providers/foundershield/representations-warranties) ## Sources for CFC vs Founder Shield ### Sources About CFC 1. [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. 2. [Regulatory information](https://www.cfc.com/en-us/support/regulatory-information/). CFC; CFC Underwriting Limited; CFC Lloyd's Syndicate 1988. Accessed 2026-09-23. ### Sources About Founder Shield 3. [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. 4. [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. 5. [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. Updated 2026-09-29. 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). 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