Private Equity: We understand the difference between venture capital and private equity firms. Although the insurance needs are similar, the expectations of investors are quite different.REITS
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Venture capital investors expect risk. Private equity investors typically have a lower tolerance for risks; however private equity acquisitions often trigger lawsuits. We know how to design insurance programs than take this into account.

We have been insuring private equity and venture capital companies since our  inception, including their portfolio companies. We also have experience with claims  arising from this space.

In cases of an IPO and /or M&A, litigation is not only frequent but should be expected.

We have designed innovative program structures that
allow for the transfer of risk for: General
Partners, Limited Partners, Members,  General Partnership,
specific professional malpractice, dedicated outside  directorship
protection and employments practices.
General partners typically have board representation on each portfolio company. These  can raise insurance issues that must be addressed with the correct policy language. We  have placed D&O/E&O/EPL insurance for private equity firms from $1 to over $50 million limits.

Private Equity Management Liability (“PEML”) is a comprehensive insurance product  designed to protect the private equity firm and its individuals against claims arising out  of the activities performed in managing the fund. The policy consists of several  coverage parts, including:

Directors’ and Officers’ Liability: protects the directors and officers of the  private equity firm, its subsidiaries and related entities (i.e. Funds, General Partners,  Investment Holding companies) against alleged errors, omissions, misleading  statements, breach of trust or breach of warranty

Outside Directorship Liability: coverage for directors, officers or employees for  wrongful acts while acting in a capacity of director, officer or manager of a portfolio  company

Professional Liability: covers claims alleging failure to perform professional  services (investment advisory services)

Employment Practices Liability: protects officers and employees against suits  alleging wrongful termination, sexual harassment, failure to hire or promote, and  discrimination

Crime: protects the entity against direct financial loss sustained because of  employee or third party dishonesty, fraud or computer  crime.

These programs typically have numerous layers of  carriers, be sure to ask us about PurX®, the only true/  pure excess policy wording in the industry.


Investment Advisor: Investment Advisors are  under growing compliance and regulatory scrutiny  and continue to be held to an ever-increasing  level of professional duty. Individuals and firms  are increasingly at risk of being sued for the  services they perform. Even when lawsuits and  claims appear to have little or no merit, the cost of  defending those allegations could severely impact  the financial condition of a business.  ExecutivePerils develops solutions to meet the  industry's need for competitive and affordable  E&O insurance for Investment Advisors.

For investment advisers, the risks of a substantial  claim may be particularly acute: The potential  losses arising from such a claim, especially if  brought by a corporate retirement plan or a wealthy  individual client, could be millions of dollars.

All current financial lines policies are written on a  claims-made basis. That is, each E&O policy is in  force for a given period, usually one year, and any  claims commenced during that policy period are  applied to that policy, regardless of how long it may  take to defend and resolve the claim. Thus, the  purpose of purchasing new policies annually is to  insure against potential new claims, not to keep  insurance in force for claims that were previously  asserted and are still pending. Of course, after a  claim has been made, it normally is too late for an  uninsured defendant to commence the process of purchasing insurance to cover the claim. Under most financial lines policies, the insurer  has an obligation to pay the policyholder’s defense costs, subject to a  deductible or a retained limit. Under such policies, the policyholder chooses its counsel, subject to the consent of the insurer, and the insurer pays the defense  counsel’s attorneys’ fees. Occasionally, policies provide that the insurer will conduct the defense, using counsel of the  insurer’s choosing and at the insurer’s expense. Claims may be resolved by settlement  or by judgment. A core feature of any liability policy is to  indemnify the policyholder for defense and settlement, subject to any applicable policy limit. Such  payments are commonly termed “indemnity” payments, to differentiate them from the  payment of legal costs and other defense expenses. Some financial lines policies  promise to pay any settlements or judgments “on behalf of” the policyholder—that is, the  insurer will pay the claimant directly. Other policies promise to indemnify the policyholder for the sums that the policyholder has already paid in settlements or judgments.

An Investment Adviser  can be vulnerable to a  variety of types of  charges, such as:

A claim that a client suffered investment losses, did not achieve as much gain as was due, lacked access to funds, or was harmed in some other way because the adviser recommended


selected an unsuitable investment. A claim that a client was damaged because the adviser breached its _ fiduciary duty to the client, either through self-dealing


some other breach of the client’s trust. A claim that the adviser gave investment advice


executed a client’s instructions carelessly


negligently, which resulted in a loss for the client.


A claim that the adviser breached its client agreement.

All policies have a "settlement" provision, which will allow the insurer to settle with plaintiff OR not to settle but not be responsible for any amount occurred above the potential settlement amount. This is commonly called the "Hammer Clause"!

“Please see polic(ies) and endorsement(s) for exact terms, conditions and exclusions.  Each insurance company has its own policy language.  We encourage you to seek legal advice prior to securing any insurance."