Chubb vs 
Founder Shield: How Do They Compare for Representations and Warranties Insurance?
Chubb underwrites R&W policies for either side of a deal; Founder Shield brokers with third-party carriers and lists buyer-side examples such as financial misstatements, undisclosed taxes and hidden contracts.
Chubb writes R&W itself for either side of a deal, and its seller-side policy backstops your indemnity promises, which helps funds near the end of their life and minority sellers. Founder Shield brokers mostly buy-side R&W with insurers rated A- or better for sponsors, strategic buyers and family businesses being sold. 1,4,3
What Are the Key Differences Between Chubb and Founder Shield Representations and Warranties Insurance?
Seller-Side Protection at Chubb vs Buy-Side Placement at Founder Shield
Chubb underwrites R&W for either side, and says its seller-side policy backstops negotiated indemnity, a key benefit for PE or VC funds winding down and for minority or passive sellers worried about joint and several liability. Founder Shield places R&W with outside insurers rated A- or better by AM Best, mostly on the buy side, for PE and other sponsors, strategic buyers, corporate sellers of a unit and family-owned businesses being sold. Choose Chubb if you're a selling fund or minority seller who wants your own protection; choose Founder Shield if you're buying and want a broker to shop insurers. 1 4 5 3
Pricing and Loss Examples vs Defense Within the Policy
Founder Shield names the breaches R&W typically pays for: misstated financials, undisclosed tax, legal or regulatory non-compliance, and undisclosed contracts or leases. It says premiums usually run as a percentage of the limit you negotiate, which helps you budget. Chubb covers loss including defense costs above a retention for unintentional and unknown breaches, but gives no pricing guide. 3 1
What Should You Confirm in Chubb and Founder Shield Representations and Warranties Insurance Quotes?
- Ask Founder Shield which insurer it would place with; Chubb issues its own policy. 1 5
- Decide whether you need seller-side indemnity protection or a buy-side policy before you ask for quotes. 1 3
- Check that the breach types Founder Shield lists are covered on the form you're offered. 3 1
- Compare retention, limit and premium as a percentage of limit. 1 3
Chubb vs Founder Shield Representations and Warranties Compared
Chubb vs Founder Shield: Representations and Warranties Insurance: documented features by provider
| Criteria | Chubb Representations and Warranties (R&W) Insurance | Founder Shield Representations and Warranties Insurance |
|---|---|---|
| Who It’s For | Chubb's R&W product is part of its broader transactional risk suite serving large U.S. and Canadian multinational companies and their brokers; the reviewed pages do not state a minimum deal size for R&W specifically. 2Company-reported. Multinational large-accounts page Specialty Coverage list; R&W page does not itself state deal-size eligibility. | 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. 3Company-reported. Representations and Warranties Insurance product page. |
| How to Apply | 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. 1Company-reported. R&W Insurance product page quote call-to-action. | 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 | 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. 1Company-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. 1Company-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. 1Company-reported. Benefits of a Seller-Side R&W Insurance Policy section. | 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 | Chubb underwrites representations and warranties (R&W) insurance directly, available to either buyers or sellers in an acquisition or merger transaction. 1Company-reported. R&W Insurance product page. | 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. |
