How should I evaluate the business’s insurance coverage?
Category:
Buying a Business
Insurance helps protect both the business and its owners from a variety of risks. During due diligence, buyers should understand the types of coverage currently maintained, recent claims history when appropriate, and whether the business may require different or additional coverage after closing.
Insurance requirements often vary depending on the industry, employees, vehicles, property, and other operational factors.
Discussing insurance needs with qualified professionals before closing is generally a prudent step.