What goes into the price of RWI
The cost of a representations and warranties insurance policy is not a single number. On a typical U.S. placement it is the sum of several distinct items, each of which can vary independently:
- Insurer premium — coverage limit multiplied by a rate-on-line set by the insurer.
- Retention — the amount the insured bears before the policy responds (a deductible-equivalent, expressed as a percentage of enterprise or asset value).
- Underwriting fee — a one-time fee paid to the insurer (or its appointed underwriting agent) to perform diligence on the transaction.
- Surplus-lines taxes and fees — state-level taxes and stamping or filing charges applied to most RWI placements.
- Wholesale and intermediary charges — disclosed charges applied through the licensed U.S. wholesale placement chain.
- Separate retail broker fee — if any. Some retail brokers charge a fee on top of the carrier-paid commission embedded in premium. WolfTRI’s standard model does not include an additional WolfTRI retail broker fee.
The interactive RWI economics calculator on the Market Access & Compensation page itemizes these inputs and computes illustrative all-in cost. It is illustrative only — not a quote, indication, or binder.
Premium and rate-on-line
Premium is the largest single component of cost. It is calculated by multiplying the policy limit by a rate-on-line, expressed as a percentage of the limit. Rate-on-line varies by transaction type, asset class, diligence quality, retention level, and overall risk profile.
Illustrative rate-on-line bands used in 2026 planning conversations:
- Real assets: approximately 1.7% to 2.0% of limit, with a $75,000 minimum premium.
- M&A: approximately 2.75% to 3.5% below $50M of limit, 2.5% to 3.25% from $50M to under $100M, and 2.25% to 3.0% at $100M and above.
- GP-led secondaries: approximately 2.0% to 3.0% of limit, with structure-driven variation.
These figures are illustrative planning ranges only. Actual rate-on-line is set by the insurer for the specific transaction.
Retention
The retention is the dollar amount the insured absorbs before the policy responds. On real-asset and M&A deals it is commonly 0.10% to 0.25% of enterprise or asset value initially, with step-downs typical after twelve months on operational representations. A 0.00% retention may be available for certain true fundamental representations and warranties, subject to insurer appetite, underwriting, and final policy terms.
Underwriting fee
The underwriting fee is a one-time fee paid to the insurer (or its appointed underwriting agent) to perform diligence on the transaction. It is typically $40,000 to $50,000 in the current market, and is generally committed under an expense agreement signed before underwriting begins — the fee is owed even if the transaction does not ultimately close.
Surplus-lines taxes, stamping and filing
RWI is generally placed on a surplus-lines basis in the United States. That means the placement attracts state-level surplus-lines taxes (typically 2% to 6% of premium, varying by state of placement), and may also attract stamping office charges and filing fees. WolfTRI’s licensed producer coordinates these charges through the licensed U.S. wholesale and surplus-lines intermediary participating in the placement chain.
Wholesale and intermediary charges
Where a wholesale or surplus-lines intermediary participates in the placement chain, disclosed charges associated with that role may apply. WolfTRI’s economics page itemizes these inputs alongside premium, underwriting fee, and taxes so the client can see the full all-in cost.
Separate retail broker fee — or no additional fee
U.S. RWI premiums embed a carrier-paid commission that compensates the placing broker. Some retail brokers charge a separate retail broker fee on top of that commission — commonly around 0.65% to 0.75% of coverage with minimums in the range of $40,000 to $80,000, net of commission — which is added to the all-in cost of the placement.
Under WolfTRI’s standard RWI placement model, there is no additional WolfTRI retail broker fee. WolfTRI’s compensation is the insurer-paid commission already embedded in the premium. Premiums, underwriting fees, surplus-lines taxes and fees, stamping or filing charges, wholesale or platform charges, and third-party professional fees may still apply.
Illustrative all-in cost ranges
The ranges below are illustrative planning figures only — not a quote, indication, or binder. They use WolfTRI’s model: insurer premium + underwriting fee ($40K–$50K) + surplus-lines taxes and fees (approximately 2% to 6% of premium), with no additional WolfTRI retail broker fee. Actual costs vary by transaction, jurisdiction, insurer appetite, and final policy terms.
| Coverage limit | Premium range | All-in cost range |
|---|---|---|
| $5M | $85K–$100K | $125K–$155K |
| $10M | $170K–$200K | $215K–$260K |
| $25M | $425K–$500K | $475K–$580K |
| $50M | $850K–$1.00M | $905K–$1.11M |
| $100M | $1.70M–$2.00M | $1.77M–$2.17M |
| Coverage limit | Premium range | All-in cost range |
|---|---|---|
| $10M | $275K–$350K | $320K–$420K |
| $25M | $690K–$875K | $740K–$980K |
| $50M | $1.25M–$1.63M | $1.32M–$1.77M |
| $100M | $2.25M–$3.00M | $2.34M–$3.23M |
| Coverage limit | Premium range | All-in cost range |
|---|---|---|
| $25M | $500K–$750K | $550K–$845K |
| $50M | $1.00M–$1.50M | $1.06M–$1.64M |
| $100M | $2.00M–$3.00M | $2.08M–$3.23M |
A retail broker that charges a separate target fee (commonly around 0.65% to 0.75% of coverage, with minimums of $40K to $80K, net of commission) would typically add tens to hundreds of thousands of dollars on top of the figures above. WolfTRI does not charge that additional fee.
For an itemized read on a particular coverage limit and retention, see the RWI economics calculator.
Frequently asked questions
How much does RWI cost?
All-in RWI cost typically includes insurer premium, an underwriting fee (commonly $40,000 to $50,000), surplus-lines taxes and fees (commonly 2% to 6% of premium), stamping or filing charges where applicable, and any disclosed wholesale or intermediary charges. Illustrative all-in ranges in 2026 are set out in the tables above for real-asset, M&A, and GP-led secondaries transactions. These are illustrative planning figures only, not a quote, indication, or binder.
What is included in all-in cost?
All-in cost generally includes insurer premium, a one-time underwriting fee, surplus-lines taxes and fees, stamping or filing charges where applicable, disclosed wholesale or intermediary charges, and any separate retail broker fee charged by the placing broker. WolfTRI’s standard RWI placement model does not include a separate WolfTRI retail broker fee.
Does WolfTRI charge a separate broker fee?
No additional WolfTRI retail broker fee under the standard model. WolfTRI’s compensation is the insurer-paid commission already embedded in the RWI premium. Premiums, underwriting fees, surplus-lines taxes and fees, stamping or filing charges, wholesale or platform charges, and third-party professional fees may still apply.
What drives the price of RWI on a particular deal?
Key drivers include the policy limit and retention selected, the rate-on-line set by the insurer based on transaction type and risk profile, the underwriting fee, surplus-lines taxes and fees in the applicable state, any stamping or filing charges, disclosed wholesale or intermediary charges, and any separate retail broker fee. Asset class, deal size, diligence quality, and policy structure all influence the rate-on-line.
This material is provided for general informational purposes and does not address any particular transaction. It is not legal, tax, accounting, investment, valuation, engineering, environmental, title, technical, or financial advice; it is not a quotation, binder, policy, or coverage determination. RWI availability, underwriting, pricing, retention, exclusions, capacity, and policy terms vary by transaction. The applicable transaction documents, authorized placement records, and final policy control. RWI is placed by WolfTRI’s licensed producer through a licensed U.S. wholesale and surplus-lines intermediary.
WolfTRI does not act as claims administrator or coverage counsel and does not determine or guarantee coverage, payment, settlement, timing, or recovery.