Scope of Work
- Corporate and operational review
- Risk and exposure assessment
- Insurance policy and coverage exclusions review
- Prior claims and liabilities evaluation
- Insurance strategy and tail coverage requirements
Background: A client was evaluating the potential acquisition of a large real estate portfolio. Corporate Protection Group was engaged to complete an insurance and risk review as part of their due diligence process.
Solution: We reviewed the environmental risks, critical contracts, historical claims, and underwriting data. As part of this review, we had identified that the sellers were utilizing market value to insure the portfolio and not the replacement cost. This significant overstatement of value materially inflated the seller’s insurance costs.
Outcome: Armed with this information, we worked with our client to identify that a normalized premium under their policy would be approximately $300,000 cheaper than what was represented by the seller. Not only did our clients reap the benefits of this unexpected savings, but these reduced costs indirectly increased the overall value of the asset through increased cashflow.
Benefits to our clients
Minimize Coverage Gaps
Align your insurance coverage to the unique needs and operations of your ever-changing business, positioning you for optimal protection and profitability.
Make Informed Decisions
Better understand the unique risks and exposures associated with your M&A transaction in order to make more informed business decisions.
Reduce Legacy Exposure
Protect your business from lingering claims and contingent liabilities, providing greater confidence that your financial interests are protected.
Facilitate Deal Closure
Tailored insurance and risk solutions that reduce or eliminate seller or buyer concerns, streamlining the due diligence process and enabling deals to close more quickly.