Post-Sale Liability And How to Protect Yourself
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Guest Introduction
Allan Webb is a partner at Snellings Walters, an independent insurance agency ranked in the top 100 largest P&C agencies in the nation. With 30 years of commercial insurance expertise, Allan specializes in the construction industry, helping business owners navigate the complex insurance landscape before, during, and after business transitions. His deep understanding of risk management, claims handling, and post-sale liability protection has guided countless clients through successful exits while protecting their hard-earned wealth from unexpected claims that can arise years after closing.
Summary
In this episode of the Power Exit Podcast, John Marsh welcomes Allan Webb who reveals a critical blind spot: most business owners think selling a business works like selling a house—sign papers, get cash, walk away. The reality? Claims can emerge months or years after closing, leaving former owners financially exposed without proper protection. Allan explains the critical difference between asset sales and stock sales, what "triggering the policy" means, and why claims after closing fall under "completed operations." Listeners discover how tail policies protect from post-sale lawsuits, why EMR (Experience Modification Rating) matters during due diligence, and the difference between tail policies, E&O insurance, and reps and warranties coverage. Allan also covers captive insurance structures, common seller mistakes around insurance, and why streamlined risk management documentation enhances business valuation. Whether you're doing an asset sale or stock sale, this episode shows why insurance isn't just a line item—it's a deal-maker or deal-breaker.
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