Operations Due Diligence: An M&A Guide for Investors and Business

INSURANCE

Risk avoidance is a requirement in the day-to-day operations of any business. Insurance is expensive, but all businesses must protect their operations, assets, employees, and owners. The type of insurance a business must carry depends on its operations and the market it is in. As a minimum, it needs to include protection from the common risks such as legal liability, fire, and theft. It may also include coverage such as specialized malpractice insurance, director’s liability insurance, and errors and omissions insurance. As a business grows, the types and limits of its insurance will change. There needs to be an annual review of the types and amounts of coverage that are needed. Does the business have sufficient insurance coverage, ...