Dr Allen Nazeri DDS MBAHealthcare M&A Expert

Tail Insurance in M&A: Why Buyers Require Sellers to Secure Coverage at Closing | PRIME exits™

16 Sept 2025 · 0 min

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Tail insurance extends liability coverage after a deal closes, protecting both buyer and seller from lawsuits tied to events before closing. It covers professional liability, D&O, employment, and cyber risks in asset and stock sales alike.

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Are you worried about inheriting hidden risks in an M and A deal? You need to watch this if you want a clean break when buying or selling a business. Tail insurance or extended reporting period coverage protects both buyers and sellers from lawsuits tied to pre closing events. Even after the deal is done, buyers require it to shield against surprise claims, professional liability, D and O employment, cyber risks. Whether it's an asset or stock sale, skipping tail insurance can mean big financial headaches down the road. So before you close that M and A deal, make tail insurance a top priority. Your future self will thank you.
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