Why Buyers Look at Insurance
A storm can close a business for weeks. Buyers want to know the building, equipment and inventory are insured, what the deductibles are and how the company would pay people while it recovers.
Insurance costs have risen across Florida, so a buyer also wants to see what the premiums look like today, not three years ago.
The Records to Gather
- Current property, windstorm and flood policies with deductibles
- Business interruption coverage and its waiting period
- General liability, workers' compensation and commercial auto policies
- Five years of loss runs from each carrier
- Any open claims, with letters from the carrier
Loss runs matter because they show claim history. A clean record helps, and a past claim explained with repair receipts is not a problem.
Windstorm Deductibles
Many Florida policies carry a separate hurricane deductible set as a percentage of the insured value. Buyers add that number to their risk list, because a large deductible can mean a six figure bill after one storm.
Know yours before they ask. If you rent, find out who insures the building and what your lease says about repairs.
Employees and Continuity
Buyers also ask how people get paid when the doors are shut. Show whether the company keeps a cash reserve, carries business interruption coverage that includes payroll, or has a line of credit it can draw on.
A written continuity plan, even a single page, tells a buyer you have thought about the first week after a storm.
Storm Preparation Counts
Show that the company has a plan: shutters or impact windows, backed up files, a list of staff phone numbers, a way to move inventory and equipment. Buyers feel better about a company that has handled a storm before.
Photos of the property and an inventory list also help if a claim comes later.
What Changes at Closing
In an asset sale, the buyer buys new policies, and the seller cancels theirs after closing. Align the dates so there is no gap, since a loss on closing day would otherwise fall between two owners.
In a sale of company stock, the existing policies usually continue, but the carriers should be told.
Lenders may require specific coverage before funding, so give the buyer's agent time to quote.
Questions to Expect
Expect buyers to ask when the roof was last replaced, what wind rating the doors and windows carry and whether the property has flooded. Gather the permits and invoices now so your answers come with paper behind them.
Where This Fits
Companies that install shutters and windows are especially tied to storm seasons. See impact window and shutter company valuation and yacht and boat service. To see what your own coverage does to value, ask for a private estimate.