The M&A Mastermind Podcast - Episode 91 - Navigating E&O Insurance in M&A Transactions

In this episode of the M&A Mastermind podcast, host Nick Olsen interviews Javier Gonzalez, a partner and executive vice president of sales at Access Insurance Services. They discuss the importance of Errors and Omissions (E&O) insurance for M&A advisors, particularly in the lower middle market. Javi explains common misconceptions about E&O insurance, key components of policies, must-haves for M&A advisory firms, and the risks and exposures they face. He shares real-life examples of how E&O insurance can protect firms from significant financial losses and highlights common mistakes made during the purchasing process. The conversation also touches on trends in E&O policies, the importance of regular policy reviews, and advice for evaluating insurance coverage. Takeaways

• E&O insurance is crucial for M&A advisors to protect against claims.
• Many advisors believe they won't be sued, which is a misconception.
• Understanding the scope of services is vital when selecting a policy.
• Subpoena coverage is often overlooked but essential for M&A advisors.
• Staying within your expertise is important to avoid risks.
• Regular policy reviews can help ensure adequate coverage.
• Higher deductibles can lower premiums but may erode coverage limits.
• Expertise in E&O insurance is necessary for proper guidance.

Chapters 00:00    Introduction to M&A and Insurance Services 01:18     Understanding Access Insurance Services 02:56     The Importance of E&O Insurance in M&A 04:19     Common Misconceptions About E&O Insurance 07:20     Key Components of E&O Policies 10:37     Must-Haves in E&O Policies for M&A Advisors 12:59     Risks and Exposures in M&A Transactions 17:46     Real-Life Impact of E&O Insurance 20:39     Common Mistakes in E&O Insurance Purchases 25:00     Trends in E&O Policies and Claims 27:00     Reviewing and Updating E&O Policies 28:59     Advice for First-Time Policy Evaluators Keywords M&A, E&O insurance, insurance policies, professional services, risk management, lower middle market, claims, misconceptions, policy review, insurance trends