Private Equity Insurance
Insurance for Private Equity, Venture Capital and Investment Firms
Now more than ever, Private Equity and Investment firms are recognizing the value of insurance carriers to address the exposures attendant to the complex environment in which they operate.
FCA’s transaction advisory solutions enhance deal facilitation through the reduction and transfer of contingencies onto the insurance markets. Our team helps fund managers anticipate and respond to the many risks associated with an M&A transaction. From firm and fund-level risk solutions to target acquisition due diligence and advisory, we pride ourselves on improving valuations for our Private Equity partners.
General Management and Professional Liability Insurance Solutions
PE firms and their managers are faced with threats of litigation arising from dissatisfied investors, portfolio company stakeholders, regulatory investigations and employment practices liability, among others. In today’s increasingly litigious environment, it is critical that firms insulate themselves from these risks through the use of a comprehensive Management & Professional Liability insurance program. Most commonly, this includes:
Management Liability (D&O)
Provides personal financial protection to company directors and officers against the consequences of actual or alleged “wrongful acts”.
Outside Directorship Liability (D&O)
Offers a second tranche of liability protection to directors and officers who serve on the board of outside entities.
Professional Services Liability (E&O)
Enhanced protection to the fund and its managers against claims of negligence, errors or omissions throughout the normal course of operations.
Employment Practices Liability (EPL)
Protection against written employment contract disputes including claims of discrimination and harassment brought forth by employees, independent contractors, lawyers, volunteers and related third parties.
Transactional Insurance Solutions for Mergers and Acquisitions (M&A)
Transactional insurance products offer a third pillar of protection to insulate firms against the financial risks involved in the purchase, sale or merger of companies. Both sides of the transaction benefit from the financial clarity afforded under these policies, such as a reduction of post-close indemnity escrow requirements. Broadly speaking, this includes:
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Representations & Warranties Insurance (R&W)
Protection against financial loss due to any misrepresentation or warranties made on behalf of the selling company. Examples include undisclosed liabilities, loss of material customers and financial statement misrepresentations.
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Tax Liability Insurance
Provides greater purchase price clarity by shifting the responsibility of known tax contingencies away from the insured and onto the insurance company.
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Contingent Liability Insurance
Insurance coverage to offset the risks associated with specific and identified contingent liabilities which neither party is willing to stand behind. This may include known exposures such as impending lawsuits, shareholder disputes, and regulatory investigations.
M&A Due Diligence and Strategic Insurance Advisory
FCA’s Private Equity Practice offers strategic advisory and due diligence support across all stages of the transaction lifecycle. We enable fund managers to appropriately identify and manage insurance-related costs and contingencies by offering:
- Front-line insurance due diligence to support target acquisitions
- Evaluation and management of aggregation strategies across the entire portfolio
- Enhanced protection through comprehensive, catch-all wordings
- Predictable pricing with flexibility for organic growth and bolt-on acquisitions
- Frictionless transitions at exit through portable and transparent coverage structures
FCA is Canada’s Commercial Insurance Experts Since 1919
FCA has been providing Canadian companies with commercial insurance since 1919. We support Private Equity, Venture Capital and Investment firms through unparalleled market intelligence, transaction advisory, acquisition due diligence and comprehensive insurance coverage.
Why Choose FCA Insurance?
Advanced Market Intelligence
We know insurance. Offering comparative benchmark statistics to advise on how your program stacks up against industry peers.
Trusted by Insurance Markets
Leverage our deep, longstanding relationships with all of the most reputable insurance markets in the industry.
Global Capabilities, Localized Approach
Our highly specialized team offer solutions to even the most complex risks, regardless of jurisdiction.
Get A Free Consultation Today!
Discover how we can unlock immediate value in your firm’s operations. Our Private Equity practice team is ready to offer insight and solutions right from the first discussion.