fund-level diligence,deal by deal.

Someone who works the deal and then places the program. Look for a broker who can quote the go-forward program before signing, read the credit agreement's insurance terms, cover the holdco board and the sponsor's own management liability, and still be there at the first renewal. Riza is a licensed insurance agency that does all four for independent sponsors and their capital partners. Coverage is subject to underwriting and policy terms.

Often worth considering. Raising capital deal by deal creates exposure similar to a fund manager's, from SPV investors, founders, lenders and regulators, separate from each portfolio company's D&O. Ask whether a policy can add new SPVs automatically and how premium is rated without committed capital.

Usually the sponsor fronts them, and they’re commonly reimbursed at closing by the company or the capital partners. If the deal dies, costs often stay with the sponsor unless a capital partner agreed to share them. That’s why insurance diligence matters most on deals that may not close.

Most expect the current program and premiums, five years of loss runs, known gaps, the cost of the go-forward program and any one-time costs at close, such as a D&O tail. They want it in dollars, tied to the model, and early enough to shape the terms.

Typically as three numbers: the go-forward premium versus today, the EBITDA impact and what it means for value at your multiple, and one-time costs at close. Add the material findings and how each is handled: priced in, negotiated with the seller or fixed at close.

Usually the seller, who keeps the business and its policies until closing. The purchase agreement often requires the seller to maintain coverage and notify carriers of known issues. The buyer’s program, lender certificates and any R&W policy typically start at closing, so plan the handoff with no gap.

Usually D&O covering the holdco board, including the sponsor and capital partner directors, plus any coverage the credit agreement requires. The operating company keeps its own program. Many sponsors buy D&O that covers both entities, bound at closing so there’s no gap.

Usually yes, once they take board seats. D&O covers claims about decisions made as a director, and capital partners often require it before they fund. The sponsor’s own firm may also want management liability for its deal activity, separate from each company’s policy.

Start at the LOI, not in the last two weeks. Request loss runs and policies in week one, share the credit agreement’s insurance terms early, and have the new program quoted before signing. Most delays come from late loss runs or certificates that don’t match the lender’s wording.

Yes. We can share findings with your capital partner’s deal team, counsel or their own insurance advisor, and align the report with their diligence checklist. With your OK, we’ll join the diligence calls so everyone works from the same numbers.