Ironshore Canada introduces new professional liability policy for private equity and venture capital firms

Ironshore Canada’s professional and management liability unit, IronPro, has introduced a new policy for Canadian-based private equity and venture capital firms, protecting against portfolio investment risk exposures worldwide.

The Private Equity Liability Insurance Policy provides comprehensive coverage for risks arising from funds’ indemnity obligations, Ironshore says.

The policy provides coverage for directors and officers, errors and omissions, employment practices liability insurance lines, and can include provisions for general liability risks. Policy limits are available for up to $15 million.

“IronPro recognizes that private equity funds in Canada can have unique, distinct structures that offer various services to support portfolio company operations, thereby resulting in significant risk exposure,” Daniel Lee, underwriting manager for IronPro noted in a company statement.

“Private equity professionals who manage funds by taking calculated investment risks should consider specialized insurance to protect themselves and the funds’ indemnity obligations that arise through normal business activities.”

The policy also features comprehensive protection for outside directorship liability, which is designed to protect executive exposure when assuming leadership positions on boards of fund investment entities worldwide.

The company also says its coverage has fewer exclusions than comparable plans, and that it does not have a “restrictive professional liability trigger tired to professional services offered by the private equity fund on behalf of portfolio companies.”

It also provides for 100%  allocation of defense costs within the policy limit and does not exclude pollution liability risks, according to the company.

“The private equity and venture capital industries are vital to Canada’s economic health,” Dane Hambrook, vice president of IronPro and mergers and acquisitions insurance with Ironshore Canada commented in a statement.

“We are pleased to provide solutions such as our Private Equity Liability policy to help mitigate Canadian fund managers’ operational risk exposures, along with Mergers & Acquisitions solutions, such as Representations and Warranties Insurance, to limit their post-closing indemnification liabilities, facilitate the distribution of deal proceeds and enable the redeployment of risk capital into the Canadian and global economies.”