The short answer
A merger or acquisition changes the entity, activities, employees or sites. Prepare an insurance inventory before signing, check what happens on the effective date and confirm the subsequent arrangements with insurers in writing. What happens to each policy depends on the form of the transaction, the contract and the law: have this checked before signing.
Before signing
The SME Portal points out that an acquisition may involve the company's shares or its assets, and that an in-depth review requires documents to be gathered. For insurance, the practical question is simple: who will be the policyholder afterwards? The answer, to be clarified with your legal advisers, affects what happens to the contracts.
Draw up an inventory: policies, endorsements, renewal dates, premiums, open claims, known demands for compensation.
What changes with the transaction
- Entities and registered company names concerned
- Activities added, removed or combined
- Employees and payroll transferred
- Sites, buildings and inventories
- Vehicle fleet
- Open claims and ongoing demands for compensation
- Periods covered by liability policies
On the effective date
Set a precise date and check that no cover ends before the next cover begins. For policies operating on a claims-made basis, such as directors and officers liability (D&O), pay particular attention to how prior acts are treated. Ask insurers for written confirmation of the position on that date.
After the transaction
In the following months, harmonise the contracts, update activities and values, inform employees of changes to accident insurance (UVG/LAA), sickness daily allowance insurance or pension arrangements, and monitor inherited claims. This review does not replace legal or tax due diligence; it complements it.
Having one person responsible for insurance during the transition makes everything simpler: they maintain the inventory, centralise confirmations and know whom to notify of a claim in the very week of the takeover.
Frequently asked questions
Do contracts automatically follow the acquired business?
Not necessarily. The outcome depends on the form of the transaction, the contract and the law. Obtain written confirmation for each important policy.
What happens to open claims?
Keep the applicable policies, claim notifications and positions already received. Obtain confirmation of continued claims handling and the relevant contacts after the transaction; do not assume that a claim or benefit automatically transfers to another insurer.
When should employees be informed?
As soon as changes to accident insurance or sickness daily allowance insurance are known. If a change of pension institution is being considered, staff participation and prior agreement must be addressed before the decision, not afterwards: see our guide to changing occupational pension (BVG/LPP) funds.