Venture Capital and Private Equity Insurance for Management Liability

Money and asset managers and general partners of Venture Capital (VC) and Private Equity (PE) firms face significant risk and liabilities. As "fiduciaries" they face significant liability exposures as result of managing other people's money. Numerous firms have closed down because they were sued and did not carry adequate liability insurance protection.

General partners of private equity and venture capital funds have legal obligations to their limited partners. Depending on the legal structure of the fund and the management company and the fund's legal documentation, the general partners can face unlimited personal liability. While most Partnership Agreements indemnify the general partner for liability, Venture Capital and Private Equity insurance in effect protects the limited partners' investments and the Fund's investment return.

In addition, the markets take the view that general partners "control" their portfolio companies. This adds risk and exposure to liability that exceeds the typical director or officer role. These factors make carrying Venture Capital and Private Equity Insurance extremely important.

Defending a management liability claim, notwithstanding the potential damages, can be staggering.

A. Logan specializes in organizing and obtaining comprehensive, specialized insurance policies and programs to protect general partners and funds against venture capital and private equity management liability.

A. Logan works with these types of policies that provide coverage for:

  • Directors & Officers Liability
  • Employment Practices Liability
  • Management Liability
  • Outside Directors Liability

  • Contact A. Logan today to exploring your Venture Capital and Private Equity risks and insurance needs. Our specialists would be pleased to review your risk profile and analyze your existing insurance programs.

    To learn more or obtain a free quote, contact A. Logan