New Woodruff Sawyer General Partnership Liability (GPL) Guide Highlights Rising Regulatory Pressure and Competitive Insurance Pricing for 2025

SAN FRANCISCO, Oct. 29, 2024 /PRNewswire/ — Woodruff Sawyer, one of the largest independent insurance brokers in the US, has released its inaugural GPL Looking Ahead Guide for 2025. Tailored for the Private Equity and Venture Capital community, the Guide highlights key trends shaping the General Partnership Liability (GPL) market—rising claims activity, regulatory shifts, and competitive pricing—setting the tone for Q4 2024 and beyond.

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Key Trends and Findings

1. Rising Legal Costs and Regulatory Scrutiny

• Asset managers are facing higher legal fees as they seek top-tier counsel for regulatory matters, creating potential gaps in coverage.
• The SEC’s evolving regulations, including the Private Fund Adviser Rules and amendments to Regulation S-P, have increased compliance risks, particularly in cybersecurity and AML.

Competitive Insurance Pricing Holds—with Caveats

• Increased insurer capacity has driven premiums down 0–20% for firms without significant claims.
• In 2025, underwriters are expected to tighten underwriting for firms with portfolio company-related claims or heavy debt exposure.

Regulatory Investigation Coverage in Focus

• Brokers are securing broad coverage in the soft market, including provisions for informal investigations, a critical benefit given the SEC’s scrutiny of portfolio companies.
• If investigation-related losses rise, insurers may reconsider this broad coverage.

Claims Landscape: Portfolio Companies and Partner Disputes in Focus

• Outside Directorship Liability (ODL): Directors on portfolio company boards face growing legal exposure.
• Employment Practices Liability (EPL): Disputes, such as wrongful termination and carried interest claims, present unique challenges.
• Regulatory Inquiries: Though infrequent, these are high-risk and expensive, requiring close coordination between legal and insurance teams.

Navigating 2025: A Data-Driven Approach

Woodruff Sawyer emphasizes the need for tailored GPL programs. Leveraging insights from more than 2,000 historical claims, the firm helps clients align coverage with evolving risks. With competition among insurers rising, VC and PE firms can negotiate favorable terms—if they proactively manage their risk profiles.

“We developed the General Partnership Liability Looking Ahead Guide to address the complex challenges our clients face, from SEC investigations to portfolio company risks,” said Luke Parsons, National Private Equity & Venture Capital Practice Group Leader at Woodruff Sawyer. “For more than three decades, we’ve partnered with innovative venture capital and private equity firms, delivering the expertise and advocacy needed to secure optimal coverage, pricing, and claims outcomes. With over 40 specialists and a comprehensive platform, we empower clients—from first-time fundraisers to global firms—through deep industry insights, benchmarking, and relentless advocacy to navigate the evolving insurance landscape.”

About Woodruff Sawyer:

As one of the largest independent insurance brokerage and consulting firms in the US, Woodruff Sawyer protects the people and assets of more than 4,000 companies. We provide expert counsel and fierce advocacy to protect clients against their most critical risks in property & casualty, management liability, cyber liability, employee benefits, and personal wealth management. An active partner of Assurex Global and International Benefits Network, we provide expertise and customized solutions where clients need it, with headquarters in San Francisco, offices throughout the US, and global reach on six continents. For more information, call 844.972.6326, or visit woodruffsawyer.com.

Contact: [email protected]

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