VC firms, as a function of their nature, accept a higher than average level of trading risk to obtain higher return. Where there is no need to accept risk because this can be easily and economically be transferred to insurers this should be a priority.
“Innovation is a member of TechAssure – the endorsed provider of the National Venture Capital Association. TechAssure members manage over 200 venture capital firms’ insurance programs across the US and EU.”
H. Garrett Droege, CPCU, CIC
Executive Director
TechAssure Association
This can take the form of:
- Ensuring the D&O insurance is both broad enough and to a suitable limit to protect the VC nominated Director
- Desktop reviews of portfolio company insurances
- Detailed meeting with the board of portfolio companies
Information
Investment Audit
Existing Programme High Level Comment
Existing Programme Detail Comment
Directors Liability Coverage Review
Contract Reviews
It is important to understand the extent to which liabilities entered into in commercial contracts are protected by insurance.
A key part of an insurance broker’s service is looking at insurance and indemnity clauses in contracts and providing informed comment.
Any commercially aware insurance broker will work with you to look at your contractual exposures
Paul Dickson
Innovation use a template approach to examine contract clauses, enabling the insured and uninsured exposures to be understood. This approach works just as well in both simple contracts like leases and more complex agreements like software supply or construction work
Considerations
- Leases
- Software contracts
- Service supply contracts
- Construction contracts
Lease Reviews
Cyber Assessment
Physical Surveys
Environmental Audit