NVCA Today

The member brokers of TechAssure just completed negotiations with OneBeacon Insurance Company (OBI), an AM Best A, XIV rated insurer, to add a Property and Casualty Insurance Program to VentureInsure, TechAssure's suite of insurance products available only to NVCA members. The coverages provided include Property and General Liability in a package policy, Commercial Auto; Umbrella; and Workers' Compensation.  Foreign Liability coverage can also be provided. 

Property and Casualty Insurance is frequently an overlooked area of protection for many Venture Capital firms primarily because the policies are a mandated purchase by state law, partnership agreements, lease agreements and financial institutions. 

Historically, most insurers have lumped VC firms into a "financial institution" classification under a Business Owner's Policy (BOP). While they provided coverage for property, commercial liability exposures, workers' compensation, etc. the end product was full of narrowing policy exclusions. In addition, many insurers who offered BOPs for venture capital firms recently withdrew from the market and are non-renewing existing policies.  Needless to say, this added further complication to an already difficult area of insurance.

The solution...

OBI has agreed to straightforward policy wording. While it has never been the intent of a VC Commercial General Liability policy to provide coverage for claims at the portfolio company level, the OBI policy addresses this with significantly improved policy language.  In addition, the policy does not contain a Professional Liability exclusion.  This has never been done before and allows the VC to have more extensive personal injury and advertising injury coverage under the Commercial General Liability policy. Note that this is not meant to be a replacement for Professional/Errors and Omissions coverage (as found under a Venture Capital or Private Equity Professional policy) as the definition of "property damage" in OBI's General Liability form does not cover financial damage without accompanying actual physical damage. This does, however, fill a major coverage gap between General Liability and Professional Liability coverages -- namely that the former historically excludes professional liability and the latter excludes bodily injury, property damage, personal injury and advertising injury.

What about cost?

Recent renewals in the OBI program have saved NVCA member firms about 25% on their annual renewal premiums. In current economic times, we believe better coverage for less cost is an unparalleled solution for NVCA members. 

This program can only be accessed via a TechAssure broker. NVCA members can visit the www.ventureinsure.com website to learn more and to contact a member of TechAssure, which has a local representative ready to serve you.

Pamela W. Mason, AAI, is TechAssure's NVCA Committee Chairperson and Vice President, Management Liability Practice Leader of Mason & Mason Technology Insurance Services, Inc. Ms. Mason specializes in risk assessment and coverage solutions in the areas of private equity and venture capital liability, corporate securities liability, directors and officers liability, portfolio liability programs, fiduciary liability and employment practices liability.  Ms. Mason can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 781-447-5531 X132.