Insurance transfer

A share sale can sometimes keep an existing policy in force under the same corporation, subject to the insurer’s consent and often a change-of-control notification. An asset sale almost always means new policies from day one, because the assets are moving into a different legal entity. Either way, a gap in coverage between closing and the new policy taking effect is a risk nobody should carry, even briefly.

What typically needs attention

• Commercial general liability and property coverage, bound and confirmed before possession changes hands
• Business interruption coverage, particularly for a business with a physical location
• Workers’ compensation registration and clearance — WSIB in Ontario, and the equivalent board in each other province — since some boards can attach unpaid premiums to purchased assets
• Any policy the seller carried that a lender or landlord specifically required as a condition

Why this is a closing-day item, not an afterthought

Confirming coverage is usually a condition of closing precisely because a lender or landlord will not release funds or consent to an assignment without it, and because operating even one day uninsured exposes the new owner personally. This is treated as routine paperwork far too often, when it is really one of the last things standing between signing and actually taking possession.