Founder Shield vs Lockton Representations and Warranties Insurance

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. ⁷Company-reported. About-us page; applies to Founder Shield's brokerage model generally, restated here for this line.

Lockton's RWI Practice is staffed with former M&A lawyers and transaction advisors who Lockton says use a Partner/Associate model on every deal to provide 24/7 coverage; Lockton places RWI policies rather than underwriting them. ¹¹Company-reported. RWI product page as read 2026-09-23.

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. ³Company-reported. General carrier-selection FAQ, not specific to this line's placements.

The RWI page does not name the insurers underwriting the representations and warranties policies Lockton places. ¹¹Not publicly disclosed. RWI page checked 2026-09-23.

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. ⁶Company-reported. Representations and Warranties Insurance product page.

Lockton frames RWI benefits separately for sellers (faster access to sale proceeds, reduced post-closing exposure, avoiding a guarantee) and buyers (broader protection, faster negotiation, avoiding conflicts in deals with meaningful seller participation), meaning both sides of an M&A transaction are the intended buyers of the product. ¹¹Company-reported. RWI product page as read 2026-09-23.

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. ⁶Company-reported. Product page; the issued policy and declarations control actual coverage.

Lockton describes RWI as a policy used to replace or bolster a seller indemnity or escrow in an M&A transaction, under which an insurer indemnifies the buyer for losses from an unknown breach of a representation or warranty in the deal agreement. ¹¹Company-reported. RWI product page as read 2026-09-23. General description of how the product functions, not a specimen policy.

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. ⁶Not publicly disclosed. Representations and Warranties Insurance product page, checked 2026-09-23.

Not described in the reviewed sources.

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. ^7,3Company-reported. About-us and carrier-selection pages describe the general placement process, not a line-specific application form.

Not described in the reviewed sources.

Not described in the reviewed sources.

Lockton says it provides dedicated transaction liability claims experts after a policy is bound, and cites having helped clients settle hundreds of millions of dollars of RWI claims to date. ¹¹Company-reported. RWI product page as read 2026-09-23. Aggregate claims-settlement figure is company-reported and not independently verified.