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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.

VCAP PE GPL insurance

Funds

General Partnership Liability must be coordinated with portfolio company coverage. 

Private Equity

VCAP and portfolio company coverage upgrades need be closely managed. Consider a single broker that can do both.

Venture Capital 

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 consisten
cy 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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