Helping you navigate private equity complexities

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Private equity professional liability

Private Equity practices are recognizing the value of insurance carriers to help protect revenue from changing regulatory and investment climates. Engage with our investment specialists to review the potential risks that face your firm's portfolio and innovative strategies to help secure capital assets.

Why Zurich?

Zurich's Private Equity Group specializes in the dynamic economic, legal and regulatory factors that can affect your business. Our dedicated team uses risk insights in order to predict and prioritize effective responses to emerging issues. As part of the Zurich suite of insurance solutions, our approach to private equity benefits from integrated insurance coverages that can extent into property, casualty, liability and captives products and services.
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General private equity and venture capital risk management

Zurich offers the following solutions for qualified private equity or venture capital firm:

  • Fidelity bonds
  • Cyber security coverage
  • Strategic Risk Solutions – Multi-line and multi-year policies covering exposures at the firm or portfolio company / asset level
  • Alternative risk financing options
  • Captive services

Furthermore, the private equity group has access to Zurich’s vast array of property and casualty products and solutions for the risk management of your portfolio companies and assets.

Management and professional liability

  • Management Liability and Indemnification Extension
  • Outside Directorship Liability Extension on a double-excess basis
  • Definition of Claim includes investigations of an Insured Person
  • Definition of Loss includes carve-back for Section 11, 12 and 15 of US Securities Laws
  • Definition of Portfolio Company includes services to prospective portfolio companies

Transactional insurance

The Zurich Private Equity Group provides a range of important Transactional Insurance solutions to help PE firms anticipate and respond to a variety of risks that may arise during the life cycle of an M&A transaction, including:

  • Representations and Warranties coverage to help protect either the buyer or the seller from unanticipated losses that may occur during or after an M&A transaction, such as a suits alleging breach of contract

  • Tax Liability coverage to help address historic tax uncertainties associated with a company about to be acquired or any uncertain tax position that may arise out of the transaction itself

  • Contingent Liability coverage to help protect against financial loss in cases where project financing or capital infusion may be hindered by an unanticipated risk

Credit risk solutions

Zurich understands the financial risks and challenges inherent within every private equity or venture capital transaction. We help PE firms answer those risks by providing collateral solutions tailored to specific target investment and requirements, including:

  • Tailored financial requirements and collateral solutions for PE firms
  • Credit risk professionals located in each region with experience in private equity transactions
  • Access to credit risk decision makers through meetings and conference calls
  • Financing options such as flexible installment plans, letters of credit, and Zurich’s proprietary eZ TrustTM   solution

Employment practices liability

  • Definition of Employee includes independent contractors and volunteers of the Insured Organization
  • Third Party Coverage included

Fiduciary liability

  • Voluntary Settlement Program Extension included - $100,000 sub-limit inclusive of defense costs
  • Definition of Loss includes punitive, exemplary and multiple damages subject to the most favorable jurisdiction, and civil penalties included under 502(i) and 502 (l) of ERISA
  • Definition of Loss includes civil penalties under HIPAA - $50,000 sub-limit
  • Broad definition of Plan

Fidelity bonds

The Zurich Private Equity Group can help PE firms protect company assets against financial loss during the course of a transaction by arranging fidelity bond coverage for the fraudulent and dishonest acts of specified individuals or employees.