Global Mergers and Acquisitions (M&A) hit an all-time high in 2021, with a 24% increase in M&A deals and a 64% increase in the value of those deals over 2020, according to Reuters. In fact, 2021 was a record year, with the overall value of M&As reaching $5.8 trillion, obliterating the previous record of $4.55 trillion set in 2007. Numerous financial sources predicted robust M&A activity in 2022 and beyond. While recent reports indicate the pace of M&A activity has slowed as a result of higher interest rates, stock market volatility and other economic speed bumps, the volume of deals remains significant.
With all this corporate moving and shaking, there are bound to be challenging business adjustments to make in the process of combining companies; however, incorporating merged or acquired businesses into a company’s commercial casualty insurance program doesn’t need to be painful. The important thing is to provide your insurance carrier with the information it needs to help you avoid a lapse of or deficiency in coverage. So what does your insurance carrier need to know?