FAQs
What is GPL Insurance?
General Partner Liability (GPL) Insurance is a blended D&O and E&O policy designed specifically for private funds. It protects both the general partner (GP) for its investment management activities, and the fund’s directors and officers for their oversight of the GP and fund-level decision-making.
Is GPL the same as D&O?
No. Traditional D&O policies cover portfolio company executives. GPL protects fiduciaries at the fund level - including the GP and the individuals who appoint or oversee it. It addresses exposures that standard D&O and E&O policies do not.
When should a fund purchase GPL coverage?
GPL should be considered at fund formation, during capital deployment, prior to exits or acquisitions, or anytime governance, regulatory, or LP risk exposure increases. Mature funds often restructure GPL programs to reflect changes in assets, strategy, or oversight roles.
What kinds of claims does GPL cover?
Common claims include breach of fiduciary duty, valuation disputes, conflicts tied to coinvestments or side letters, regulatory enforcement actions, and fund-level employment issues.
Who provides GPL Insurance?
A limited number of insurers specialize in underwriting GPL coverage. URM works directly with these carriers to structure policies that reflect the legal and operational complexity of each fund.
Intro to GPL Insurance
Venture capital and private equity funds are governed by layered legal structures - capitalized by limited partners (LPs), managed by general partners (GPs), and overseen by fund directors and officers. While portfolio company D&O insurance is common, it does not protect the decision-makers at the fund level, where the true fiduciary liability resides.
General Partner Liability (GPL) Insurance is a specialized, blended policy that combines Directors & Officers (D&O) and Errors & Omissions (E&O) coverage. It protects the GP for its investment decisions and management services (E&O), and protects fund directors and officers for their oversight of the GP and selection of managers (D&O). This dual exposure is unique to private funds - and cannot be adequately addressed without deep legal and insurance expertise.
GPL Insurance is not a standard product. It must be custom-structured to reflect the fund’s strategy, governance model, regulatory profile, and conflict dynamics. Done right, it serves as a cornerstone of fund governance - protecting the fund’s fiduciaries, preserving internal rate of return (IRR), and mitigating personal liability across the management structure.
In this guide, we break down:
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What GPL insurance covers (and what it doesn’t)
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Real claims examples involving fund managers and boards
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The difference between GPL and D&O
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When to buy GPL and how to structure it
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How underwriters evaluate fund risk
What’s Inside the Guide
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7 core sections written by attorneys & insurance experts
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Claims scenarios from real disputes
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GPL vs. D&O: side-by-side comparisons
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Coverage benchmarks by fund size
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Pitfalls to avoid when structuring your policy
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How to request a review of your current GPL program
→ Download the Full PDF Guide
Why This Matters in 2025
Regulatory scrutiny of fund managers is increasing. LPs are demanding more transparency. And deal terms are more complex than ever.
We’ve seen firsthand how:
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LPs sue GPs for valuation disputes
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Portfolio exits spark fiduciary liability claims
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Side letters and coinvests create hidden conflicts
Whether you’re managing a first-time fund or a multi-billion-dollar platform, GPL coverage is essential for protecting the management entity from evolving legal, operational, and reputational risks.
D&O Isn’t Enough. GPL Is a Different Policy.
Common GPL Claims
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Alleged mismanagement of LP capital
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Breach of fiduciary duty in side deals
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Fund-related employment disputes
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Regulatory actions against the management entity
Most D&O policies exclude fund-level risks. GPL fills that gap when structured properly.
About URM’s GPL Practice
Upward Risk Management (URM) works with some of the most sophisticated venture and private equity firms to design GPL coverage that responds to real-world claims.
Our team includes former underwriters, attorneys, and brokers with over 15 years of experience in:
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D&O and GPL policy drafting
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Claim defense strategy
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Board risk governance
We don’t just sell policies—we build coverage that stands up to lawsuits.