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How One Missed Clause Cost This Buyer $98,000!
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Joshua Richman is a seasoned insurance advisor and Partner at Symphony Risk, where he specializes in guiding acquisition entrepreneurs, searchers, and private equity firms through the complexities of insurance due diligence. With over 13 years of experience, he has helped hundreds of business buyers identify hidden risks, optimize coverage, and avoid costly mistakes post-acquisition.
In this episode, Josh breaks down real-world stories of deals gone wrong due to overlooked insurance issues—from $700K worker’s comp claims to missing subcontractor agreements. Whether you're under LOI or already operating a business, this conversation is packed with actionable insights to help you protect your investment and save thousands.
00:00 Intro
02:03 Josh’s Background in ETA and Insurance
03:45 The Roofing Company Story: Missed Wrap-Up Coverage
06:17 W-2 vs. 1099 Labor Risks
09:01 Why Insurance Costs Skyrocket After Acquisition
12:15 The 5 Policies Every Business Must Have
18:07 The Truth About Umbrella Policies
21:38 Common SMB Insurance Mistakes
24:51 What to Look for in Loss Runs
27:40 Understanding the Experience Mod (Ex Mod)
30:59 The Hidden Risk in Auto Claims
33:16 How One Driver Raised Premiums by $6K
35:42 Why Subcontractor Agreements Matter
38:27 How Cyber Insurance Is Rated Today
40:00 Avoiding $98K Mistakes: Real Deal Examples
44:31 What Buyers Get Wrong About Asset Purchases
48:54 How to Audit Existing Insurance Coverage
52:09 Hidden Exclusions That Can Destroy a Deal
54:30 Industry-Specific Risks to Watch For
58:47 How to Reduce Your Premiums Post-Acquisition
1:03:12 Using Telematics and Safety Culture to Lower Risk
1:06:35 The Legal Pitfalls of Safety Bonuses
1:09:00 Final Takeaways for Acquisition Entrepreneurs
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