LPP: new Chubb endorsement covers risks in M&A, etc.

The endorsement is an enhancement to Chubb's Venture Capital Asset Protection policy which covers directors and officers liability, errors and omissions liability and outside directorship liability under one contract. Among other features, the endorsement:

• eliminates scheduling requirements for funds, investment holding companies and newly-created funds engaged in similar activities as the existing funds;
• includes a new, less restrictive "organisation vs. insured" exclusion compared to the industry standard "insured vs. insured" exclusion; and
• expands the definitions of "organisation," "insured person" and "claim."

"Chubb's new endorsement helps venture capital and private equity firms address new risks and exposures in an increasingly fast moving and constantly evolving industry," said Ric Duenaz, assistant vice president and venture capital/private equity product manager for Chubb Specialty Insurance.

However, such policies are generally not permitted to cover criminal or regulatory fines and penalties: such is considered to be contrary to public policy.