Venture Capital Liability Protection
Venture capitalists face numerous risks in the course of their daily activities as investors and advisors. These may include lawsuits from limited partners and portfolio company management and shareholders alleging:
- Professional or administrative errors and omissions that result in financial loss – including improper investment advice provided to the funds and breach of contract;
- Breach of fiduciary duty when the best interests of a fund or individual venture partner and those of the portfolio company conflict;
- Refusal to invest, improper dilutive financings, unfair competition, or theft of IP;
- Wrongful termination, discrimination or other civil rights violations by employees of the portfolio companies or the VC firm employees;
- Securities law violations and “controlling person” liability allegations.
THE VENTUREINSURANCE DIFFERENCE
TA Services Agency and NVCA have partnered with three of the nation’s leading A+ rated insurers specializing in VC liability insurance to provide NVCA members with superior protection and pricing. After extensive market R&D, TA Services Agency has developed a liability insurance policy for NVCA members that provides unsurpassed protection to VC firms and their partners.
VentureInsure SM covers:*
- Entity Exposures
- General Partners Liability
- Directors & Officers Liability
- Outside Directorship Liability
- Errors & Omissions Liability
- Employment Practices Liability
- Fiduciary Liability;
*subject to policy terms and conditions
Featuring:
- Broad coverage with respects to IP, conflict of interest, run-off liability, severability, anti-trust and breach of contract claims;
- Proven premium savings based on NVCA program leverage, expertise, efficiency and attention to an individuals firm’s risk profile.
Resources:
- The Assumption Of Unnecessary Risk And What To Do About It
- Founders of Web Site Accuse Backers of Cheating Them
- Adopting New Strategies for Managing and Insuring Portfolio Risk
