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4 Tips When Selecting Your Broker

By Josh Warren | Published October 16, 2018

How do you know if your broker knows what they’re doing?

Choosing the right broker and purchasing the right insurance is a key decision that will protect your firm’s reputation in a myriad of potentially catastrophic loss scenarios. Here are four tips that may help you through the insurance purchasing process at venture capital and private equity firms:

• Your insurance is not a commodity. The policies most important for venture capital and private equity firms, like general partnership liability and cyber, are highly manuscripted. There is constant change with underwriter appetite and in the legal climate, making these policies critical for covering the largest claims your firm may face.

• If you renew your policy and nothing changes from the year before, that should give you pause. I recommend starting the renewal process 120 days out to accommodate any changes. Look for a broker who considers your renewal long before it is due.

• The general partnership liability insurance your firm buys overlaps directly with the D&O insurance at the companies you invest in. Involving your broker in the policy review or decision-making processes can fill any gaps and streamline the process.

• Don’t let the market decide where you buy your insurance. Avoid splitting the marketplace by assigning insurance companies to multiple brokers. A skilled broker with market access will simplify your job and yield the results you need.

The insurance purchasing process doesn’t have to be confusing. Through a single point of contact, the resources available will ensure expert support throughout all phases of the purchasing and service process.

The Author

Josh Warren

Senior Vice President

Josh is a Senior Vice President and M&A Advisory Practice Leader of Newfront Insurance and Financial Services. His responsibilities include operational leadership, client management, program design, and risk analysis for alternative asset managers and Newfront clients facing a merger or acquisition.

The information provided here is of a general nature only and is not intended to provide advice.