• Potential insurance audits for exceeding prior years exposures • Expecting prior policy premiums to remain consistent in the future – the policies reviewed may not include endorsements that occurred during the term • Understanding the insurance market conditions relating to the class of business of the acquisition • Looking into cyber coverage, crime, D&O and other exposures potentially not covered • Potential unseen Workers’ compensation experience mod issues – mod reviews are important • Sometimes agents make mistakes, and you need to verify the policies are rated correctly and the policy forms are strong • Fully shopping the marketplace to find a better deal is always good practice redactedif you have any questions

Are you saying you are trying to fix the operational issues that led to liability or just trying to avoid the liability that was created in the past? In any deal, you should insulate yourself from the liability of the past. This is achieved through an asset sale in many cases. Or, you include language in your contracts that will exclude your liability from anything that happened in the past and force the past owner to indemnify you from anything that does occur from the past. Operationally, I think in some sense that's part of the diligence process. Like are there any pending or potential lawsuits. Are they operating in accordance to all laws and so on. You would have cover in your due diligence process because will ask them to warrantee against these things. But, of course, any breaches requires a lawsuit and can be a mess. Then, during integration, you should be learning the business and discovering everything about the operations.