Venture Capital / Private Equity Firms
The insurance needs of a Venture Capital or Private Equity Firm are unique in that they include concerns for the firm itself in addition to their stable of portfolio companies. For over 20 years, Tropp & Company, Inc. has served as the de-facto insurance department to a number of Venture Capital / Private Equity firms.
Our Venture Capital practice concentrates in three areas:
- Insurance Coverage for VC/PE Firms
- Insurance Coverage for Portfolio Companies
- Pre-Acquisition Due Diligence
Insurance Coverage for VC/PE Firms
The insurance needs for the firm itself can be more complex than a simple service business. In addition to the common coverages such as Property, General Liability, Workers Compensation, we have an industry leading level of experience in the coverage areas that are unique to the Venture Capital / Private Equity Industry.
Solid relationships with underwriting units for coverages such as:
Venture Capital Asset Protection
VCAP Policies are generally “wrap” style policies, which combine Directors & Officers Liability, Outside Directorship Liability, Fiduciary Liability, Employment Practices Liability, and other key coverages in to one policy form.
Outside Directorship Liability
Outside Directorship Liability Insurance is designed to protect the firm and its employees, partners, or delegates, from exposure generated from the management and operation of the firm’s portfolio companies. This coverage often sits excess of the Directors’ & Officers’ policy in place at the portfolio company level.
Directors’ & Officers’ Liability
Directors’ & Officers’ Liability Insurance is designed to protect the Directors, Officers, and the firm itself from exposure generated from the management and operation of the firm.
Fiduciary Liability
Fiduciary Liability, in this context, is designed to protect the firm and its employees from exposure generated by their control and allocation of Limited Partners’ funds. This coverage becomes crucial if the firm is holding committed capital, rather than drawing it down when needed for an investment.
Initial Public Offering Liability
As a portfolio company prepares for an IPO, the company must prepare for a number of changes in their insurance program. From revised Directors’ & Officers’ Liability coverage to rewritten employee manuals, Tropp & Company, Inc. will handle the insurance needs of the company, allowing the principals to concentrate on the intricacies of the IPO.
We suggest that you allow Tropp & Company, Inc. to bring a level of comfort and expertise for the coverages that are often most important to the firm.
Insurance Coverage for Portfolio Companies
Often times, Venture Capital / Private Equity firms are investing in companies that have unique challenges and opportunities. Our history of serving middle market companies, often with multi-state and international exposures, makes Tropp & Company, Inc. a natural fit for VC-owned companies.
Pre- Acquisition Due Diligence
From the time the letter of intent is signed to the date of closing, our client firms rely on us to provide a crucial piece of their acquisition planning. Tropp & Company, Inc. becomes a member of our client firm’s due diligence team, and will spend as much time “on the ground” as necessary to provide a detailed report on the makeup and forecasts for the target company’s Property/Casualty and Health Insurance.
Read more about our Due Diligence services.
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