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Executive Risk Insurance Facility

Executive Risk Insurance Facility

For Private Equity and Venture Capital backed Portfolio Companies

Vanbridge’s Executive Risk Facility presents a better way for private equity and venture capital-backed companies to procure their Executive Risk insurance policies.

  • Specifically Tailored to Private Equity and Venture Capital Firms and their Portfolio Companies

  • Efficient and Streamlined Approach to D&O Insurance Purchasing

  • Common Manuscript Form

  • Accepted by Five A Rated Insurance Carriers

As a firm that works primarily with members of the alternative asset management community, we understand the frustrations that occur in a typical arrangement. Private equity and venture capital funds need to know that their partners and employees are protected while they serve as directors, observers, and occasionally, officers of their portfolio companies; however, they don’t want to spend time evaluating all the policies across their portfolio nor do they want to dictate insurance decisions to their portfolio companies. Understandably, portfolio companies want broad coverage but don’t want to lose the partnership with their retail insurance broker they know and trust.

A group of business executives

The Vanbridge Difference

At Vanbridge, we worked with our 200+ participating private equity and venture capital firms to develop risk solutions that make sense for their businesses. We listened to their frustrations and developed a more efficient, streamlined approach to D&O insurance purchasing.

The ideal D&O contract for most companies within certain broad categories (e.g., public, private, public debt, healthcare, energy, and technology industries) is essentially the same. However, the D&O insurance market has historically resisted standardization of its policy forms. The result of these different policy forms and competing interests is the overcomplication of something that should be straightforward.

The Vanbridge Facility has performed extremely well over the last 10 years and is currently providing coverage to over 3,500 portfolio companies backed by over 200 different PE/VC funds. Some of the program’s key benefits and features include:

  • Common Form

    Negotiated in conjunction with leading law firm D&O practice groups, the common form provides for the breadth of coverage that leading private equity and venture capital firms seek. With a common form, consistency of coverage is a given. When policies are purchased through the Vanbridge facility, you only have to know the pricing, limits and exclusions (if any) – obviating the need for expensive, time-consuming D&O insurance policy reviews.

  • Open Brokerage

    Vanbridge is broker-neutral. Any broker can access the Vanbridge facility, provided the private equity or venture capital firm has endorsed the facility.

  • Administration

    The facility will be managed and administered by Vanbridge. As the facility manager, we ensure the quotes are accurate and the administration goes smoothly.

  • Risk Aggregation

    Historically, private equity and venture capital firms have failed to aggregate their portfolios. Vanbridge has successfully placed over 3,500 portfolio companies into the facility from over 200 PE/VC Funds and is now the largest facility in space. Our industry aggregation and an attractive loss ratio have made this a very sought after program for clients and insurers.

  • Benchmarking

    No broker or insurer has the detailed loss and purchasing benchmarking data Vanbridge maintains for this sector.

  • Added Leverage

    If a participating insurer does not provide adequate service, the risk can be transferred within the facility and/or the insurer can be removed. As such, Vanbridge can wield more leverage than any single firm or portfolio company.

  • Superior Service

    Freed from negotiating each and every term of the D&O contract on a policy-by-policy basis, brokers can better focus on advising their clients and providing exceptional service.