All management liability policies have a trigger when a business is acquired, which generally states that cover will continue to apply but only for wrongful acts - committed or alleged - prior to the acquisition. At the point of the acquisition, the buyer will likely have their own management liability policy and the acquired company should have cover on a go-forward basis. If it is a private equity purchase, there will usually be a new go-forward policy under a managed portfolio. These scenarios assume that the acquired company still exists. In the case of a merger, the acquired company will no longer exist, which leaves uncertainty for the acquired company’s directors and officers. Depending on when the run off occurs, you may want to advise your client to purchase ‘run off’ or ‘tail cover’.