Merger and Acquisitions
Merger and Acquisition – In a situation where one company merges with another to become a single entity, or when one company is acquired by another, it is imperative that both parties review and update their insurance coverages to ensure all risks are accounted for.
To make sure your company is not blindsided by surprise liabilities after a merger or acquisition transaction, GCRM performs the following review:
- Perform an Insurance Review.
- Ensure all of the seller’s existing policies have sufficient limits and adequate coverage for its main risks.
- Determine whether the seller has any potential liabilities that are not insured. To do this, review the seller’s claims history and existing policies.
- Take note of the seller’s existing contracts guaranteeing indemnification, or agreeing to additional insured status for suppliers, customers or corporate affiliates of the seller.
- Review existing contracts to look for any indemnities or insurance that may have been presented to the seller from other parties.
- Pinpoint new exposures that could pop up if operations are added or moved to locations unfamiliar to your company. New coverages may need to be purchased or old policies may need to be updated to make sure these operations are covered.
- Address any circumstances or conditions that could generate claims that would fall under the seller’s coverage.
Address any differences in the way the seller reported claims with the way the buyer reports claims.
GCRM does not sell insurance. On a “fee only” basis, GCRM verifies property & casualty portfolios for accuracy and helps businesses navigate the renewal process and risk management programs.