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Fund-Specific Coverages
We work with market leading funds managing over $100M in assets. We take the time to understand the investment strategy and associated risks, so that we can create beautifully crafted custom insurance programs with the right insurance partners.
General Partnership
Liability (GPL)
General Partners
Limited Partners
E&O
$
Fund
Investment Control
$
D&O
E&O
D&O
PortCo 1
ODL
PortCo 2
PortCo 3
Crime
PortCo 3
PortCo 4
PortCo 5
Cyber
GPL
Combines D&O and E&O to protect both the Directors of the fund and General Partners from professional liability in investment decisions.
D&O
Coverage needs to be coordinated to protect the Directors sitting on the board of portfolio companies.
E&O
Designed for investment decisions and services provided by the general partners for a fee.
Other
Tie-in to portfolio company coverages, and affirmatively recognize the primary insurer. This becomes especially important for D&O, E&O and cyber coverage (see below).
GPL Portfolio Company Correlation
Client
D&O
D&O
Fund
Appoint. Director
PortCo
Client
Litigation
When litigation is brought against a portfolio company, the fund is often dragged in.
This implicates two separate D&O policies, which need to be coordinated.
PortCo D&O should pay first for claims naming the fund and PortCo, with the GPL reserved as excess. This is almost never achieved automatically, and should be negotiated.
Why? because the D&O portion of the GPL is purchased to protect the fund, and the fact that they have a seat on the PortCo does not change this fact.
You need a law firm or experienced broker to review and coordinate both policies
Portfolio Program Coverage
Standard Coverage
Co. 1
Co. 2
Co. 3
Co. 4
Co. 5
Limits
Portfolio w/ Group Excess
Shared Excess
Co. 1
Co. 2
Co. 3
Co. 4
Co. 5
Limits
Lacks
- Economies of Scale
​ - Pricing
- Claims
Inconsistent
- Limits
- Terms
- Pricing
Portfolio programs
For Private Equity
Allows PE to control consistency of contract/policy language/coverage and requirements. Ensures coverage for Directors sitting on Portco boards.
For Venture Capital
Offer benefits generally reserved for Series C+ companies to all portfolio companies at competitive pricing. Monitor insurance requirements for tie-in to GPL.
Benefits
- Higher limits
- Consistent, broad terms
- Premium savings
- Claims leverage
- Single Renewal Date
Cyber
First Party
Social Engineering
BIPA
Third Party
Notice
Credit Monitoring
E&O Tie In
Financial institutions posses high-risk personally identifiable information (PII).
Furthered by the technology and AI being incorporated into fund strategy and efficiency, cyber risk has increased exponentially.
Every sate has its own regulations along with federal oversight and litigation expenses escalate rapidly. If you experience a breach, the firm will need expertise, and the right insurance policy will hire and pay top tier professionals.
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