Insurance Due Diligence in M&A Deals: Evaluating Coverage and Gaps, Mitigating Risks and Potential Liabilities

Description

M&A deal counsel must carefully evaluate insurance coverage issues during due diligence to determine ownership of insurance, identify coverage gaps and discover potential insurance-related liabilities. In addition to aiding the buyer in unknowingly assuming avoidable risks, insurance due diligence can impact the deal’s negotiated purchase price.

Effective insurance due diligence involves an assessment of risk exposure arising from the transfer and assumption of contractual obligations, pending litigation, property loss, unknown or unreported claims, insufficient claim reserves, and more. When potential insurance-related liabilities are identified counsel should address them in the deal documents to minimize risks for the buyer and seller. Buyers and sellers should also be aware of certain types of insurance policies, such as representations and warranties policies, that can help transfer risk and facilitate closing the deal.

Listen as our authoritative panel gives their perspective on best practices for conducting insurance due diligence in M&A deals. The panel will explain the key areas of focus for counsel during insurance due diligence, how insurance recovery can impact deal value, and tactics for drafting insurance-related risk provisions in the M&A agreement and an overview of available insurance products relevant to transactions.