New Venture Capital Insurance

What the New Policy Covers

The Professional First policy protects VC firms from claims tied to wrongful acts in managing companies or funds. National Post noted the coverage includes professional services performed by venture capital firms. Directors and officers get personal protection for management decisions that go wrong.

The policy also covers accidental errors in calculating a fund's net asset value. New funds get automatic protection without extra paperwork. Retired directors receive lifetime run-off coverage, meaning they stay protected even after leaving the firm.

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Built-In Protection for Fund Errors

A key feature is mitigation cover. This helps VC firms fix mistakes before they become expensive claims. The Province highlighted that the policy covers costs to correct calculation errors in fund valuations. This protects both investors and fund managers from financial losses tied to accounting slip-ups.

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Extra Coverage Options for Directors

The policy includes optional entity investigations cover for extra protection. Outside directors serving on portfolio company boards also get coverage. Montreal Gazette reported that insured persons can extend protection to board roles outside their main VC firm. This matters as many VC leaders sit on multiple company boards.

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Why Berkshire's Specialty Insurance Matters

Berkshire Hathaway Specialty Insurance backed this product with its strong financial reputation. The firm operates under a "Claims Is Our Product" philosophy, meaning it focuses on paying valid claims quickly. Edmonton Sun noted this financial strength gives Australian VC firms confidence in the coverage. Venture capital managers now have insurance built specifically for their unique risks.

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