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CNA introduces D&O and E&O coverage for private equity and venture capital firms

CNA Specialty has introduced directors and officers (D&O) plus errors and omissions (E&O) coverage designed specifically to meet the liability insurance needs of private equity and

CNA Specialty has introduced directors and officers (D&O) plus errors and omissions (E&O) coverage designed specifically to meet the liability insurance needs of private equity and venture capital firms. This coverage is targeted to private equity partners and venture capitalists who face many exposures as investment advisors, typically for high net worth or institutional investor clients.

‘Given the risk-taking aspect of their profession, fund managers can find themselves the target of management liability suits,’ says Mark Reilly, assistant vice president, CNA’s Diversified Commercial Group. ‘Defense costs can add up quickly – even if a claim is seemingly frivolous. Our new policy responds to the many liability exposures these managers face in performing their professional duties.’

Highlights of CNA’s Management Liability Solutions policy include: Entity coverage for securities, professional services and EPL claims; Outside Entity Executive Liability coverage for private and nonprofit companies; Formal Investigations coverage; and Punitive Damages coverage. This new policy is targeted to private equity and venture capital firms whose funds range up to USD5 billion in committed capital.

With more than 25 years of experience in writing professional liability coverage for the financial markets sector, CNA has maintained its stability through volatile market cycles. This new product is the latest addition to the global insurer’s Management and Professional Liability suite of products. Prior efforts have included Side A coverage, EPL Solutions, Management Liability/EPL for Law Firms, and Private Insurance Company Solutions. Further announcements are scheduled to highlight Fidelity Bond, Side A Only coverage, Professional Liability for Bankers, Insurance Companies, and Miscellaneous Professions.

CNA is the country’s seventh largest commercial insurance writer and the 13th largest property and casualty company. CNA’s insurance products include standard commercial lines, specialty lines, surety, marine and other property and casualty coverages. CNA’s services include risk management, information services, underwriting, risk control and claims administration.

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