BHSI Launches Professional First Venture Capital Liability Insurance for Australian Fund Managers

Berkshire Hathaway Specialty Insurance (BHSI) has introduced its Professional First Venture Capital Liability Insurance Policy in Australia to address the specific exposures of venture capital managers and funds. This launch provides brokers and MGAs with a specialized tool to mitigate risks in a maturing investment sector, covering professional services, management liability, and complex operational errors.

What was announced

The new Professional First Venture Capital Liability policy is designed to provide broad, customizable protection for the Australian venture capital sector. The product is specifically tailored for venture capital managers and the funds they oversee, acknowledging the unique risk profile of early-stage and growth-stage investment management. The policy provides comprehensive coverage for professional services performed by venture capital firms, alongside protection for directors and officers (D&O) against claims arising from wrongful acts in the management of a company or fund.

Key technical features of the policy include the reinstatement of Side A coverage and lifetime run-off cover for retired directors and officers, ensuring long-term protection even after individuals have left their roles. It also incorporates comprehensive crime coverage to protect against internal and external financial threats. To accommodate the dynamic nature of the venture capital industry, the policy offers automatic cover for new funds and mitigation cover to address potential losses before they escalate. Furthermore, it includes provisions for the costs of correcting accidental errors in a fund’s net asset value (NAV) calculation—a critical area of operational risk for investment managers. Optional entity investigations cover and outside director cover for insured persons serving as representatives on the boards of portfolio companies are also available, providing a holistic safety net for the entire investment lifecycle.

"Australia’s venture capital sector continues to mature, and the risks facing fund managers are evolving along with it. We are pleased to bring this innovative solution to Australia to support VC managers as they navigate an increasingly complex risk landscape."

Andrew Boosey, Manager, Financial Institutions, Executive & Professional Lines, BHSI Australia.

The companies involved

Berkshire Hathaway Specialty Insurance (BHSI) provides commercial property, casualty, healthcare professional liability, executive and professional lines, transactional liability, surety, marine, travel, programs, accident and health, medical stop loss, homeowners, and multinational insurance. The company is part of the Berkshire Hathaway group, one of the world's largest and most financially stable corporate entities. BHSI operates with a "Claims Is Our Product" philosophy, emphasizing the importance of efficient and reliable claims handling as the core value proposition of its insurance contracts.

In the Australian market, BHSI has established itself as a leading market for investment managers. The company leverages the significant financial strength of its parent organization to provide high-capacity coverage and long-term stability in specialty lines. By focusing on executive and professional lines, BHSI Australia targets complex financial institutions and professional service providers, utilizing local expertise to tailor global products for the specific regulatory and legal environment of the Australian financial services sector. The launch of the Venture Capital Liability policy is an extension of this existing expertise in the investment management space.

What FF News has reported before

FF News has tracked the global expansion of BHSI’s leadership and product capabilities across multiple jurisdictions. In Europe, the publication reported on how BHSI Appoints Katharina Rütz as Head of Executive & Professional Lines in Germany, strengthening its professional lines presence in the DACH region. The carrier also broadened its technical offerings in the Mediterranean, as BHSI Expands European Footprint with Launch of Surety Capabilities in France.

In the United Kingdom, FF News noted strategic leadership moves when Berkshire Hathaway Specialty Insurance Names Mark Walker to Lead National Business in the UK. Additionally, the company’s collaborative approach to distribution was highlighted when Berkshire Hathaway Travel Protection Partners with soNomad to Offer Travel Medical Insurance in Canada, demonstrating the group's ability to enter diverse markets through strategic partnerships.

What this means from an insurtech perspective

From an underwriting perspective, this move highlights a shift toward hyper-specialization in the D&O and professional indemnity markets. As venture capital becomes a more prominent asset class in Australia, generalist liability wordings are no longer sufficient to cover the nuances of portfolio company board representation or NAV calculation errors. This puts pressure on incumbent specialty carriers to modernize their policy wordings or risk losing market share to those with more granular risk appetite. For brokers, the inclusion of mitigation cover and NAV error correction costs represents a significant improvement in the "claims-readiness" of professional lines products, shifting the focus from reactive loss compensation to proactive risk management. This level of detail in policy construction is essential for maintaining customer trust in a sector where regulatory scrutiny of fund management is intensifying.