When selling your business, your insurance needs careful review. Most policies cannot be transferred to a new owner because they are tied to your entity, directors and activities. The buyer will usually need to arrange their own cover, while you may need to maintain protection for work already completed.
One of the most important considerations is run-off insurance. If your business provides professional services such as advice, design or certification and has Professional Indemnity insurance in place, claims can arise years after the work was done. Run-off cover ensures you remain protected after the sale, even when you are no longer operating.
It is also worth considering other policies that may need to remain in place during or after the sale process, such as:
- Public Liability, to cover any incidents that occur up until the settlement
- Workers’ Compensation, for staff or apprentices still on your books at the time of sale
- Directors & Officers or Management Liability, to protect against past decisions or investigations
For some transactions, particularly larger or more complex deals, Warranty & Indemnity Insurance may also be arranged. This type of cover protects the buyer from certain risks discovered during due diligence, and can make the sale process smoother for both parties.
Every sale is different, which is why it helps to involve us early. We can sign a non-disclosure agreement if required, review your current policies, and provide guidance on the right approach. This allows us to:
- Identify which policies should be kept in place, cancelled or adjusted
- Arrange run-off cover where necessary
- Help the buyer understand their insurance requirements
- Ensure you are not left exposed after the handover
If you are planning to sell, speak with us as early as possible. We will guide you through the process, help protect your interests, and ensure insurance doesn’t become a last-minute hurdle.
