Business Continuity Planning

The "co-insurance clause" in commercial property policies isn't just fine print—it's a financial landmine most business owners discover too late. I met with a restaurant owner last week who was stunned to learn his policy would only pay 60% of his claim despite having "full coverage." The culprit? A co-insurance clause requiring him to insure at 80% of property value, which he hadn't reviewed in years as property values surged. This isn't uncommon. In our last 100 policy reviews, 72% of business owners were underinsured relative to their co-insurance requirements—potentially leaving them with tens of thousands in unexpected out-of-pocket costs after a loss. Here's what smart business owners do differently: 1. Schedule annual property valuation updates with your broker—real estate values have increased 28% on average since 2020, but most policies haven't kept pace. 2. Request an "agreed value" endorsement that waives the co-insurance requirement (often available for a small premium increase). 3. Document building improvements and equipment upgrades throughout the year to ensure they're reflected in your coverage limits. The most powerful insurance tool isn't adding more coverage—it's understanding what you already have. When was the last time you checked your property valuation against your co-insurance clause requirements?

Many mergers and acquisitions overlook a crucial detail. Insurance. It's not just a line item. It's a potential risk to your entire deal. When you merge or acquire, you may inherit all existing policies, good or bad. Often, these policies are outdated. Or worse, they're insufficient. Or your current insurance may not cover the new risk properly. Imagine closing a deal only to discover hidden liabilities. Or unexpected coverage gaps. That's a nightmare for the economics of the deal. And your reputation. So, what's the solution? Involve your insurance advisor early. Much earlier than you think is necessary. Conduct a thorough audit of all existing policies. Assess their adequacy. And their alignment with your new business goals. This proactive approach isn't just smart. It's essential. It saves you from unexpected costs. And ensures a smoother integration. Don't let insurance be your blind spot. Make it a strategic priority in every merger and acquisition.

Several conversations with owners in the multi-family space recently who are experiencing challenging insurance renewals. 25%+ for years in a row. This is happening not only in states like CA and FL but also in the Midwest as well now. I would recommend a few major things to consider. First, what is the source of the increases? Because not everyone is seeing this extreme increase still as the hard market begins to cool off in 2023-2024. 👉 Have you done due diligence on your broker? Do not send multiple brokers to market, but broker select carefully. 👉 Are all major building systems updated if the buildings are older [built 1970s or earlier]? HVAC, roofing, plumbing & wiring. If building systems have not been updated, it may be time to sit down and really do the math on what it would cost to update some of those items over the next 3-5 years vs. continue to pay 25%+ more for insurance every year. Reallocation of funds to capex from insurance spend may be worth it. At a certain point, those increases are not sustainable. Your broker should be working with you to be proactive instead of reactive. 👉 Does your scale and financial situation support consideration of an alternative risk financing i.e. captive? 👉 Are you in a high wildfire or hurricane/wind zone. If so, have you discussed creative solutions like carving out that exposure from your Property program and placing a separate Parametric policy to address that exposure? 👉 Are you being honest with yourself about the condition of the properties? Loss ratios [5 year loss history vs premiums paid?] or is it time for an honest reflection and adjustment of reserves if insurance increases are warranted for your situation? Not sure about one or more of the items above? Reach out. Let's talk.

A quick insurance reminder to companies approaching mergers/acquisitions: remember to address the need to run off any directors & officers, professional liability and cyber insurance policies. I often see transactions where there is no such requirement imposed by the acquiring company, nor any inquiry from the target company. Here are some quick tips when structuring coverage (link to our full article in the comments): ·        Ensure any tail purchased covers the statute of limitations, which is generally 3-6 years. It should also be non-cancelable, in order to ensure the policy will remain in force for the full term. In situations where the existing carrier is only able/willing to provide a 1 year tail, you may be able to engage another carrier to sit excess for the 1st year, dropping down to provide primary coverage for any subsequent years. ·        When extending run off coverage from an active policy, carriers’ terms can differ. Some carriers guarantee run off terms, while others simply have the right to offer such terms (at their discretion). Additionally, carriers may stipulate a time frame in which organizational changes need to be reported. Ensure policy terms are adhered to. ·        In situations where the target company doesn’t currently maintain insurance, or where the incumbent carrier is refusing to provide run off terms, a stand alone policy can still be purchased, and carriers can often turn those quotes around very quickly. ·        For the acquiring company securing coverage for future wrongful acts, remember to review all of the policies (D&O, E&O, Cyber, Liability, etc) to ensure all policy terms are adhered to when adding that subsidiary to existing policies. It’s very likely the newly acquired subsidiary is automatically covered by your policies, however some policies do contain acquisition thresholds (as a percentage of owned assets) and these thresholds may differ from policy to policy. ·        The parent company should also re-review each of the policies in their existing insurance program, considering; 1) whether any policy limits may need to be increased, 2) whether there are any policy terms or exclusions that require grooming/removal, such as the professional service, or product defect exclusions, and 3) if all foreign exposures have been addressed through appropriate endorsements or placement of locally admitted policies. ·        If you’re the acquiring company and are considering tailing coverage from the seller’s existing policy, remember to carefully review those policy terms. If the underlying policy contains poor terms, you may be better off looking at alternative carriers, if able. The same holds true if the premium for the tail is excessive. ·        When purchasing run-off from an alternative carrier, be careful of any prior acts/pending litigation dates and/or new warranty statements that might be required, which can jeopardize coverage. #cyberinsurance #directorsandofficers #insurance

I'm working with close to all insurers in the GCC region at eData Information Management which gives a unique insight into what's on top of the mind of the top management - this advisory work, combined with our experience with digital transformation and AI in insurance is a great combination for providing real-world advise and 'how-to' in the fields of big data, AI, digital transformation, and organizational change management Here's a presentation about just this :-) • Successful transformation is 80% about people and only 20% about technology and processes. • Legacy systems are a major barrier to modern insurance products like micro and embedded insurance. • AI “agents” and surgical automation offer fast, practical wins without needing full AI overhauls. • Customer expectations are shaped by tech giants — insurers must keep up or risk falling behind. • Many insurers are building separate digital entities to bypass the limitations of core systems. • Breaking down internal silos and improving handovers between teams can drive 15–20% efficiency gains. • Quality data and simple automation tools are key to boosting performance and motivating teams. • Transformation offices need long-term focus, clear priorities, and buy-in from leadership to succeed. • Real change only happens when people understand the “why” and are empowered to take action. • Incremental, measurable steps outperform big-bang transformation strategies every time. https://lnkd.in/dDgTGHFg

The future of medical insurance is being reshaped by artificial intelligence — especially in the field of claims and approvals management. Across the GCC region, insurers and TPAs are beginning to realize the power of AI to transform traditional claims workflows. From automated claim adjudication to fraud detection and clinical rule engines, AI is becoming an essential tool for achieving both efficiency and accuracy. However, successful implementation goes beyond technology. It requires: - A deep understanding of local medical practices and regulatory environments - Expertise in interpreting clinical data - The ability to integrate AI solutions with legacy systems and operational workflows When applied correctly, AI doesn’t just speed up approvals and claims — it reduces errors, supports better cost control, and enhances the overall member experience. Medical insurers who invest today in building smart, AI-powered claims systems — guided by experienced professionals — will lead the way in tomorrow’s healthcare ecosystem.

Your stakeholders don't need more status reports They need confidence in the plan. It's easy to think that sending MORE status updates will earn stakeholder trust → Weekly updates → Color-coded dashboards → Bullet point highlights galore The truth is: information alone doesn't build confidence. Leadership does. Stakeholders aren't just asking "where are we?" They're asking "are we in control?" They're asking "are risks being monitored/managed?" They're asking "will we hit X target?" If you just report progress, you're replaceable. If you LEAD the plan (+ manage the risks and clearly own), you become essential. Here's how you can shift from "status updater" to confident execution leader: ✅ Tell the story, not just the facts Connect updates back to goals. Make it clear how today's progress ties back to business outcomes. Add metrics to support the tale you're telling. ✅ Own the risks out loud Don't wait for someone to discover problems. And don't hide things just because they may not happen (yet). Surface risks early, brainstorm mitigation, and have it ready. ✅ Frame the path forward Every update should answer 3 things. "What are you doing?" "What's next?" "What's needed/in the way?" When teams know what to do and know when and how to ask for help (and that you'll deliver), you'll execute at a whole new level. Think ahead. Solve problems. Navigate the ship. If stakeholders see you doing this, they won't need daily updates to feel safe. They'll trust that you can run the show. PS: what's one thing you've done to build deeper trust with stakeholders? 🤙

The Critical Importance of a Business Continuity Plan for CEOs and Executives In today’s business world, encountering a disaster may seem unlikely, but the potential impact can be severe. From natural disasters to cyberattacks, unforeseen incidents can strike at any time. Therefore, having a robust Business Continuity Plan (BCP) is a strategic imperative for CEOs and executives. The Low Probability, High Impact Scenario Disasters are unpredictable. While their probability might be low, the ramifications can be catastrophic. The rise in sophisticated cyberattacks, like the recent surge experienced by CrowdStrike, highlights that even low-probability events can have severe consequences if unprepared. Protecting Your Organization’s Resilience A well-designed BCP ensures your organization can continue to operate or quickly resume critical functions during disruptions. This plan is about more than survival; it’s about maintaining trust with customers, partners, and stakeholders. Strategic Planning and Risk Mitigation For executives, a BCP represents strategic foresight and risk mitigation. While we cannot predict every disaster, we can certainly prepare for them. This involves IT, infrastructure, human resources, communication strategies, and operational flexibility. Enhancing Stakeholder Confidence Stakeholders need assurance that your organization is prepared for the unexpected. A comprehensive BCP demonstrates your commitment to protecting their interests and ensures business continuity. The Role of Leadership The responsibility of implementing and maintaining a BCP rests with the leadership. Championing this initiative ensures that all levels of the organization understand and are prepared to act according to the plan. Conclusion While the probability of facing a major disaster may be low, the need for a BCP is undeniable. It is crucial for organizational resilience and strategic risk management. Embracing and advocating for comprehensive BCPs ensures that your organization is equipped to handle the unexpected, safeguarding its future and maintaining stakeholder confidence. #BusinessContinuity #RiskManagement #CrisisManagement #Leadership #StrategicPlanning #BusinessResilience #ExecutiveStrategy #crowdstrike #windows

🏗️ How Smart Property Developers Manage Their Business Insurance (Without Wasting Money or Getting Burned Later) 🏗️ If you're a Limited Company Director in the Property Development World, you already know: 👉 You can’t afford to get your insurance wrong. 👉 But you also can't afford to overpay for policies that don't actually protect you. Here’s how the smart developers I work with protect their businesses properly without breaking the bank: 💷 1. Keep Your Costs Down — Wisely ✅ Use a specialised insurance broker who understands your industry and knows where to find the most cost-effective cover. ✅ Bundle multiple policies together to take advantage of bulk discounts — don't pay full price policy-by-policy! 🛡️ 2. Get the Right Coverage ✅ Work with a professional broker who knows how to match real risks to real coverage. ✅ Review and update your policies every year — because your business evolves, and your protection should too. ⚡ 3. Make Claims Stress-Free ✅ Choose providers with a reputation for efficient, fair claims processes — it saves you months of headaches. ✅ Keep detailed records of all insurance activities — from inception to updates. ✅ Lean on your broker when navigating claims — it’s part of what you’re paying for. ❓ 4. Don’t Be Caught Out by Exclusions ✅ Review policy documents carefully. ✅ If you see major exclusions on critical areas (like key person risk, shareholder exits, project delays), consider adding specialist coverage. 🔄 5. Stay Ahead of Policy Renewals ✅ Set reminders well in advance. ✅ Use renewal time to negotiate better terms or switch to a better provider if needed. 🧬 6. Be Medically Underwritten (Not Just “Assumed”) ✅ Medical underwriting may sound complicated, but it gives insurers an accurate view of your current health. ✅ It ensures you’ll actually be eligible to claim successfully if something happens — no nasty surprises later. 🔑 Bottom line: Protecting your property development business isn’t about throwing money at insurance. It’s about being strategic — and working with a specialist who understands your world.

Role of Insurance in Private Equity Insurance is no longer just a safeguard—it’s an investment tool, a risk mitigation strategy, and a value enhancer in private equity. 1. Transaction-Level Insurance – Critical at Entry & Exit a) Warranty & Indemnity (W&I) Insurance Used during acquisitions when sellers want a clean exit. PE buyers use W&I to cover unknown risks, especially where indemnities are limited. Benefit: Faster deal closure, lower escrow, and higher net exit proceeds for sellers. Example: In a $200M buyout, the seller refuses to indemnify for tax litigation. A W&I policy covering $20M is arranged, costing $500K in premium (expensed). This removes the need to hold back cash in escrow. b) Tax Insurance Covers historic tax exposures (e.g., transfer pricing, VAT claims). Useful in cross-border acquisitions. c) Contingent Liability & Litigation Insurance Covers pending lawsuits or regulatory risks known at deal time. 2. Portfolio Company-Level Insurance – Post-Acquisition Protection PE sponsors standardize and optimize insurance across all portfolio companies to: Reduce premiums via group buying Align coverage with strategic risks 3. Fund-Level Insurance – Protects the GP and the Fund PE funds themselves are also entities with legal, cyber, and operational risks. Coverages include: General Partner Liability Insurance (GPLI) Errors & Omissions (E&O) Fidelity/Crime Insurance Cyber Liability for LP Data Breaches Strategic Impact: These help safeguard against LP lawsuits, employee fraud, or even fund admin failures. 4. Insurance in Exit Strategy – Enhances Exit Value Buyers (especially institutional) prefer companies with clean risk profiles. Insurance reduces buyer due diligence stress, clears litigation or tax risks, and commands higher exit multiples. Example: A company being sold has a $10M pending IP lawsuit. The seller buys litigation insurance. The buyer proceeds with a full-price offer instead of discounting the deal by $10M. Accounting Treatment (Fund Accounting Perspective) Prepaid Premium Dr. Prepaid Insurance / Cr. BankPremium Amortization Dr. Insurance Expense / Cr. Prepaid Insurance Claim Received. Dr. Bank / Cr. Other Income or Liability Settlement Liability Cover via Insurance. Dr. Liability / Cr. Income (if resolved) Why Insurance Is Strategic in PE Accelerates Transactions Reduces downside risks Increases Exit Proceeds Minimizes NAV shocks Improves Transparency with LPs Enhances GP's risk-adjusted returns #PrivateEquity #FundAccounting #PEInsurance #WandIInsurance  #TransactionRisk #NAVValuation #PortfolioCompany #RiskManagement  #CyberInsurance #DirectorsAndOfficers #AlternativeInvestments  #FinancialProtection #ExitStrategy #InvestmentRisk