Private Equity Insurance

What is Private Equity Insurance?

Private Equity Insurance protects investment firms from a wide range of exposures that can lead to litigation and/or losses. Although private equity and venture capital firms can reap substantial benefits when they acquire existing or start-up companies, this also makes them vulnerable to many potential risks, such as lawsuits, regulatory challenges, reputational damages and vulnerability to a changing investment climate. Private Equity Insurance can help companies mitigate these risks, allowing them to focus on their business operations.

Why Zurich?

Private equity and venture capital firms operate in an increasingly complex and competitive marketplace filled with economic, legal and regulatory challenges. Zurich’s dedicated team of insurance specialists use risk insights to predict and prioritize effective responses to emerging issues that can have a potential impact on your company’s portfolio.

Zurich's Private Equity Group offers an extensive suite of Private Equity Insurance solutions that extend into property, casualty, liability and captive products and services. Our experience and breadth of knowledge allows us to share innovative strategies to help secure your private equity firm’s capital assets, which can help you pursue continued growth.

International capabilities
With one of the largest networks in the insurance industry, Zurich can issue locally admitted policies in over 215 countries and territories to support our customers as they expand globally.

Claims advantage
Our team of over 9,600 Claims professionals in 32 countries is ready to provide responsive, efficient service around the world.

Flexible solutions
The depth and breadth of our risk-transfer solutions can be tailored to all sizes of private equity and venture capital firms.

Solutions

General private equity and venture capital risk management

Zurich offers the following solutions for private equity and venture capital firms:

Liability Insurance
Fidelity bonds
Cyber security coverage
Strategic Risk Solutions – Multiline and multiyear policies covering exposures at the firm or portfolio company/asset level
Alternative risk financing options
Captive services
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

Zurich provides leading solutions for management and professional liability, a key line of defense for litigation or regulatory issues arising from private equity investment activities.

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 Sections 11, 12 and 15 of U.S. 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 private equity firms anticipate and respond to risks that may arise during the life cycle of a mergers and acquisition (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 lawsuits 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 from 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 companies mitigate those risks by providing collateral solutions tailored to specific target investment and requirements, including:

Tailored financial requirements and collateral solutions for private equity 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 Trust™ solution

Employment Practices Liability

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

Fiduciary Liability

Fiduciary Liability insurance helps protect you and the assets of your investments or purchases against fiduciary-related claims of employee benefit plan mismanagement.

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 Sections 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 arrange fidelity bond coverage during the course of a transaction to help protect a company’s assets against financial loss from the fraudulent and dishonest acts of specified individuals or employees.