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Insurance due diligence

Our goal is to assist you in identifying and managing insurable risks, understanding financial impacts, and optimizing insurance strategies pre- and post-transaction.

Our global Transaction Advisory Team provides risk and insurance due diligence services to sellers, buyers, investors, and financiers of assets to help them:

  • Identify and finance pre-transaction insurable risk exposures.
  • Understand profit and loss, balance sheet, and liquidity impacts.
  • Improve insurance purchasing strategy post-transaction.
  • Seek to optimize insurance-related protections in the key transactional contracts.
  • Allocate risk efficiently.
  • Create transactions or projects that are profitable for stakeholders.

Throughout the transaction, a dedicated project management team works with your bankers, accountants, and lawyers to deliver a due diligence report that is tailored to the project and uniquely details your risk. We help you assess the risks — and opportunities — of transactions across a huge array of industry sectors and transaction types, providing insights on:

Costs

We identify annually recurring insurance costs and estimate how these could change post-close, in order to inform financial modelling. We also identify any insurance-related one-off costs that could impact value.

Cover

We review insurance policies to assess the quality and extent of protection against the target’s key insurable risks.

Continuity

We identify where policy continuity may be impacted by the transaction and recommend actions designed to improve continuity.

Claims

We review recent claims experience to assess whether it is typical and how it may impact future insurance procurement. We also assess the potential impacts of ongoing circumstances.

Sale & purchase agreement

We review SPA insurance warranties and provide input based on our due diligence findings. Where applicable, we also work with legal advisers to set out a clear position regarding pre-close insurable liabilities. 

Action planning

We produce a phased insurance action plan that considers both completion requirements and longer-term strategies to protect and create value.