CFC vs Newfront Representations and Warranties Insurance

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. ⁵Company-reported. Transaction liability product page overview, describing CFC as a deal facilitator working with private equity firms and strategic buyers and sellers.

Newfront places representations and warranties (R&W) insurance through its Private Equity & Transaction Advisory Group, which it describes as operating as "an extension of your deal-team" during M&A transactions. Newfront brokers R&W coverage; it does not underwrite it. ¹⁰Company-reported. Mergers & Acquisitions page's Transaction liability paragraph.

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. ⁵Company-reported. Limit & appetite section of the product page; the specific carrier for a given policy would appear on that policy's documents.

Newfront says it has relationships with transaction liability insurers but does not name an R&W carrier. As a broker, the insurer varies by deal. ¹⁰Not publicly disclosed. Mergers & Acquisitions page's Subject matter expertise section.

Not described in the reviewed sources.

Newfront markets R&W insurance to clients executing mergers and acquisitions, working alongside private-equity deal teams; the reviewed page does not set a minimum deal size or industry restriction. ¹⁰Company-reported. Mergers & Acquisitions page; a practice-wide description, not a stated R&W-specific eligibility threshold.

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. ⁵Company-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. ⁵Company-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. ⁵Company-reported. Secondary liquidity solutions section of the product page.

Newfront describes R&W insurance as protecting clients "across unknown risks" arising from a transaction, distinguishing it from the tax insurance and contingent-liability insurance the same team also places for "hard-to-place transaction risks." The reviewed page does not describe R&W policy exclusions, retention structure or claims-made terms. ¹⁰Company-reported. Mergers & Acquisitions page's Transaction liability paragraph; general description, not a policy form summary.

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. ⁵Company-reported. Limit & appetite section of the product page.

Published limits, retentions or premium rates for R&W coverage were not found on the reviewed page. ¹⁰Not publicly disclosed. Mergers & Acquisitions page as read on 2026-09-23; limits and pricing are deal-specific for broker placements.

Not described in the reviewed sources.

Newfront says its due-diligence professionals "operate on deal-time identifying key risk exposures, mitigation solutions, and cost-savings opportunities," and that its technology and data-analytics capabilities support the M&A insurance team's work, including transaction-liability placement. ¹⁰Company-reported. Mergers & Acquisitions page's Due diligence and Technology & data-driven results sections; describes the M&A practice generally, not R&W-exclusive services.

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. ⁵Company-reported. Buyer protect and seller protect key features on the product page.

You engage Newfront's Private Equity & Transaction Advisory Group for R&W placement by requesting a consultation, which asks for your industry, company details and the service you need rather than issuing an instant quote. ¹¹Company-reported. General consultation intake, not an R&W-specific application path.

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. ⁵Company-reported. Claims section of the product page; outcome statistics are company-reported and not independently verified.

Not described in the reviewed sources.