Congratulations on joining the io.insure platform for a small business M&A insurance policy (SEMI policy).
Before you proceed, please read the following information.
io.insure provides a bespoke insurance solution for parties involved in an acquisition or a disposal of a business.
What does the insurance cover?
io.insure offers insurance protection to the Seller or the Buyer for financial loss resulting from inaccuracies in the warranties given by the Seller as part of the business sale. The io.insure policy is tailored to your sale and purchase agreement (we call this a SPA).
Who can be named insured?
The named insured under the io.insure policy can be the Seller or the Buyer of a business, or other interested parties, including a new company, special purpose vehicle, or a guarantor.
The io.insure policy is either Seller side or Buyer side depending on the relationship to the named insured.
Before you proceed, you will need:
1) To appoint a professional advisor to assist you with this process eg solicitor, accountant, insurance broker, consultant. If you don’t have an advisor, we will assist you by making a referral
2) A sale and purchase agreement (SPA) between the Buyer and the Seller in relation to the business sale.
3) A schedule of warranties that the Seller provides to the Buyer under the terms of the SPA thereby establishing the Seller’s liability for breach of warranty (this is the trigger point for the io.insure policy to offer effective protection to the named insured). At this stage, your SPA may be in draft form only. Once finalised and signed, we will ask you to update us by uploading the final signed copy. If you don’t have a SPA to work with, or would like to see an example of seller liability and warranties, we have attached a template SPA here.
Next Steps We will ask you for information and documents and a series of questions that assist the underwriters in assessing the risk and offering a tailored io.insurance solution to you.”