Risk transfer
Insurance, Claims & Insurability
Historical coverage does not prove that the buyer can obtain appropriate insurance on acceptable terms after closing.
Buyer lens
Review claims, exclusions, limits, renewal terms and change-of-control effects before treating insurance as a routine closing item.
Seller lens
Prepare complete policy and claims history before late underwriting questions disrupt timing or expose an undisclosed operating risk.
Why it matters
- Past claims can change price, exclusions and availability.
- Claims-made policies may require tail or runoff analysis.
- A lender requirement can differ from the coverage the operating business actually needs.
Evidence to reconcile
- Policies and endorsements
- Loss runs and open claims
- Broker correspondence
- Renewal indications
- Required coverage by contract or lender