WGA works with 100 venture firms around the world, and has long been the leading insurance services provider for the VC industry. Investing money exposes venture firms to many areas of potential liability; therefore, venture investors need expert advice with respect to transferring those exposures efficiently and cost-effectively. WGA works closely with the insurers providing the broadest coverage available in the marketplace. Trusting this service to a broker who is unfamiliar with partnerships, the exposures to litigation and the policy forms leaves fund managers with the chance that all risks have not been addressed, and at an unreasonable cost. Just as venture firms need specialization for legal and accounting matters, they also require expertise for their insurance needs. As most partnership agreements require indemnification to general partners for liability arising out of their operations, limited partners usually prefer to transfer this indemnity risk to a third party to protect the returns of the fund. Otherwise, one claim could erase a significant amount of a fund’s return.
WGA was selected by the National Association of Small Business Investment Companies (NASBIC) (now known as the Small Business Investors Alliance) to manage their Professional Liability Insurance Program. WGA has added more than 50 firms to our distinguished client list and worked with countless portfolio companies by providing D&O brokerage services, Mergers & Acquisitions risk management solutions as well as IPO D&O programs.
WGA’s Venture Capital insurance services team provides:
- Brokerage services for professional liability insurance coverage for the Fund, the General Partner, the Management Company, the Advisory Board and the firm’s Principals
- D & O insurance services for portfolio companies
- Mergers & Acquisitions solutions with respect to Reps & Warranties, Tax Liability, Environmental Liability and other deal related liabilities
For additional information about our Venture Capital Practice, please contact Michael Andersen via email at mandersen@WGAins.com.