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What is Mergers & Acquisitions Insurance?
Many insurance policies require notification to the insurance company if the coverholder under an existing policy undergoes a change in control, or acquires another company above a certain size. These events can have other effects, including the obligation to pay additional premiums to cover the newly acquired company.
To make sure your company is not blindsided by surprise liabilities after the merger or acquisition transaction, it is encouraged to consider the following prior to closing the transaction:
Additional uncovered liabilities are often discovered in the merger and acquisition due diligence process, which will be covered under the comprehensive M&A insurance.
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