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The role of insurance in due diligence

What measures do you take to ensure that the companies that you are investing in have the right insurance protections?

Insurance should form a key part of the wider due diligence when evaluating companies. The question shouldn’t simply be “is there insurance in place?” but rather, “is it the right cover?”.

A due diligence exercise covering the insurances could prove to be of benefit for a number of reasons. None more so than to make sure that the assets, people and future earnings of the business are adequately protected.

Failure to ensure that your portfolio has suitable insurance protections in place leaves you vulnerable as an investor if something goes wrong which could have been covered by insurance.

Traditionally, the focus has solely been on Directors & Officers Liability and Keyperson insurances but there are a number of other areas where companies face risk, including cyber attacks, data breaches and allegations of professional negligence.

Paragon’s guide provides an overview of the key insurances that you should be looking out for as part of your due diligence exercise.

https://www.linkedin.com/smart-links/AQEHR09WU5YwCQ

Contact Eloise Morgan for more details: emorgan@paragonbrokers.com

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The role of insurance in due diligence

By Paragon30 Mar 2022