Several trends are emerging through this pandemic and lockdown.:
According to Mike Smith, President of Axis Insurance Services, LLC “We don’t really see any slowdown in the M&A activity. As a matter of fact despite the initial slow down at the beginning of the pandemic we believe that M&A activity will pick up. The reason is simple, the money is too good, and the hard market is making it difficult for traditional brokers to compete.”
Insurance coverages are an integral part of the acquisition process and due diligence and are often overlooked until the end when it’s too late to explore options. Agencies that are selling will have to purchase a tail policy for their professional and management liability coverages. Many times, you can purchase standalone policies much cheaper than from your current carrier. Given the amount of activity we encourage agents and brokers to contact us prior to the sale to review the proper transition of policies. Please find attached a document entitled
Managing Insurance Coverage During Mergers and Acquisitions
If you would like more information or would like to speak with one of our representatives, please contact Mike Smith
For Axis Insight into Mergers and Acquisitions and Tail Policies: https://www.axisins.com/products/tail-coverage-insurance/
[1] https://www.insurancejournal.com/news/international/2020/07/16/575693.htm