Acquisition and Disposal Insurance Due Diligence
Independent Insurance Due Diligence for Acquisitions and Disposals
Insurance and risk issues are fundamental, yet frequently underestimated components of corporate transactions. Failure to identify insurance gaps, legacy liabilities or coverage constraints can materially affect valuation, negotiation outcomes and post-transaction risk.
JPIC provides confidential, independent Insurance Due Diligence services to support acquisitions, disposals and corporate restructuring.
Why Insurance Due Diligence Is Critical
During transactions, insurance programmes are often inherited or transferred. Without proper review, organisations risk:
- Unknown or uninsured exposures
- Inadequate limits or misaligned cover
- Unresolved or latent claims
- Policies that do not transfer on change of control
- Material increases in post-transaction costs
Insurance due diligence ensures informed decision-making and protects value.
When Clients Engage JPIC
JPIC supports:
- Buyers assessing hidden insurance risk
- Sellers preparing assets for disposal
- Private equity and investment firms
- Corporate finance and legal teams
Our role is independent and complementary to legal and financial due diligence.
Scope of Insurance Due Diligence
A typical review includes:
Insurance Programme Assessment
- Lines of cover
- Limits and sub-limits
- Exclusions and conditions
- Alignment with operational risks
Claims and Loss Review
- Historic claims experience
- Outstanding and latent exposures
- Claims trends and volatility
Change of Control Implications
- Transferability of policies
- Consent or notification requirements
- Run-off considerations
Transaction Risk Identification
- Gaps requiring warranties or indemnities
- Need for transactional insurance solutions
- Post-deal insurance restructuring implications
Delivery Under Transaction Timelines
JPIC understands the time-critical nature of transactions. Our reviews are:
- Focused and proportionate
- Delivered within deal timelines
- Presented in clear, decision-ready format
Outputs and Value
Clients receive:
- Clear articulation of insurance risks
- Identification of deal-critical issues
- Practical mitigation recommendations
- Input to SPA negotiations and pricing
If you are involved in an acquisition or disposal, JPIC provides independent insurance insight to protect value and reduce uncertainty.
Contact JPIC to discuss Insurance Due Diligence support.