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
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