Ryan Donahue Discusses Opportunity Zone Investment Risks For In Business Magazine
Opportunity Zones and Opportunity Funds have created much excitement in the economic development world. But these new tools have many inherent risks for businesses and investors looking to make use of them for new investment.
Ryan Donahue, a risk management advisor with Lovitt & Touché, recently penned an article for In Business magazine in which he breaks down the potential risks investors face when investing in Opportunity Funds for projects in Opportunity Zones. Donahue explains that risks for Opportunity Fund projects and investments range from the unforeseen — such as natural disasters, fire and flooding risks — to potential mismanagement and poor execution of the fund itself, as well as market shifts including an economic downturn or recession that could impact the fund and its projects.
To mitigate these risks, Donahue emphasizes the use of specialized insurance coverage, such as Lovitt & Touché’s Opportunity Zone Insurance Program (OZIP), which was developed in tandem with top attorneys in the space who understand these unique risks to help fill traditional voids and excluded insurability. Lovitt & Touché’s OZIP is among the first programs nationwide that is designed to mitigate risks related to Opportunity Zones.
As a subsidiary of Marsh LLC, Lovitt & Touché boasts the resources and capabilities of the world’s leading insurance broker and risk management advisor, yet retains the close-knit, collaborative atmosphere the firm was founded with more than 100 years ago.