Insurance due diligence exercises are often time critical, precluding a detailed historic document review, and require real experience to know what to look for.The combined experience of the founders of Innovation can provide very fast focus on key issues
We have seen so many expensive due diligence reports by major lawyers and accounting firms which fail to scratch the surface of the investment target’s real insurance issues
At Innovation we provide a focused look at the key risks of the target, the limits of indemnity, the suitability of the insurers and the quality of the advisers.
Our experience is that detailed insurance due diligence rarely happens as a target firm is likely to have 10 or more policies many with over 100 pages of text, and a full exercise would require additional management interviews and 5 year history. The time involved and liability incurred by the reviewer create a timescale and fee situation which is normally unacceptable to investors.
Likewise most quality insurance brokers decline to sign any “letters of comfort” for the purchaser.
For this reason we have found our focused approach increasingly valuable to investors. We quickly identify which documents are available and can be reviewed in detail to meet the deal requirements.