Venture Capital Asset Protection Insurance
This policy is a combined product offering management liability, management indemnification, outside directorship liability and professional services liability (errors & omissions) insurance in one policy to help eliminate any gaps in your insurance program.
Benefits of Venture Capital Asset Protection
The following are automatically included with every VCAP policy:
Management Liability
Management Indemnification
Professional Services Liability
Outside Directorship Liability
Crime
Creation of another Private Fund
Worldwide Scope of Insurance
Advisory Board Liability
Insurance for Securities Actions
Controlling Shareholder Liability
Estates and Legal Representation
Who is protected in Venture Capital Asset Protection
General Partners
Managing Members
Directors & Officers
Employees
Advisory Board Members
Portfolio Companies
Policy Features of
Venture Capital Asset Protection Insurance
Broad professional services liability
Includes the formation, capitalization, operation and management of a private investment fund
Broad outside directorship liability
Insurance for outside directorships on not-for-profit or private portfolio companies
Exclusions or limitations
No exclusions or limitations on suits brought by portfolio companies against the venture capital firm, its employees or management
Things You
Probably Wonder
Venture Capital Asset Protection Insurance is a comprehensive policy that combines management liability, indemnification, outside directorship liability, and professional services liability (errors & omissions) to protect venture capital firms and their stakeholders from financial and legal risks.
This insurance is essential for venture capital firms, private equity firms, and their portfolio companies to safeguard against risks arising from management decisions, professional errors, and directorship roles.
Management Liability covers claims against directors, officers, and managers for wrongful acts in their management roles, including breach of duty, misrepresentation, and mismanagement.
Outside Directorship Liability provides protection for individuals serving as directors or officers of portfolio companies or external organizations at the request of the venture capital firm.
Yes, the policy includes Professional Services Liability (Errors & Omissions) to cover claims of negligence, errors, or omissions in providing professional services to the funds and portfolio companies.
A combined policy helps eliminate coverage gaps, simplifies insurance management, and provides comprehensive protection for diverse risks faced by venture capital firms and their stakeholders.
Yes, the policy can protect the personal assets of directors and officers by covering legal defense costs, settlements, and judgments in claims against them.
Exclusions may include intentional illegal acts, bodily injury, property damage, and certain contractual liabilities. Specific exclusions depend on the policy terms and conditions.
The cost depends on factors such as the size and structure of the firm, the number of portfolio companies, coverage limits, and the firm's risk profile. Consult with an insurance provider for a customized quote.
You can purchase this insurance through Mitigata who specializes in venture capital risks and can customize the policy to meet your specific needs.