Complex Insurance Issues in M&A Due Diligence

Description

Companies that participate on either side of a merger or acquisition must carefully consider insurance coverage issues as part of the due diligence analysis to protect buyer and seller.

Businesses acquiring or merging with another company must fully understand the potential liabilities to which they may be exposed, as well as the acquiree's existing insurance coverage both past and present.

Proper due diligence requires thorough analysis of risk exposure due to transfer and assumption of contractual obligations, property loss control, unknown or unreported claims, and insufficient claim reserves, among others.

Listen as our authoritative panel of insurance counsel offers their perspective and best practices on due diligence into potential liabilities and the claims experience, insurance coverage of the merged or acquired company, and the impact of contract indemnification language on insurance.

Outline

1. Who involved in insurance should be on the due diligence team?
   1. How can risk managers assist in valuations and mergers?
2. Knowing the structure of the insurance program of the company and the merger candidate company
   1. Understanding new potential liabilities
   2. Evaluating the claims experience of the target company
   3. Using multiple scenarios for modeling
   4. Allocation of premiums
   5. Impact of contract indemnification language on insurance
3. Extracting value from insurance programs
4. Using the analysis

Benefits

The panel will review these and other key questions:

• What should companies considering a merger or acquisition look for when reviewing the object company's historic insurance assets?
• What analysis should be conducted by the acquiring company when there appear to be gaps in the acquired company's coverage?
• What are the best ways to identify potential liabilities of the company to be acquired — and how can the acquiring company minimize the risks?

CLE Credit

Strafford seminars qualify for CLE credits in every state that accredits teleconferences. They offer you a high quality, cost effective, and convenient CLE option, with no lost travel time or expenses.

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