General Partnership Liability: Risk and Insurance Trends for 2026

Our second annual Looking Ahead to 2026: General Partnership Liability Guide for venture capital and private equity firms delves into these trends, as well as pricing dynamics and claims insights from our experts. We also include results from our recent survey of underwriter expectations for 2026.

This article shares highlights from the GPL Looking Ahead Guide. You can read the full Guide here. Plus, register now for the webinar, taking place October 15 at 10 am PT.

Three GPL Insurance Trends to Watch

1. Defense Costs Remain High, Driving Carrier Losses. Some insurance carriers active in the GPL market have experienced higher losses, but high capacity means there’s still healthy competition.
2. Keeping an Eye on Regulatory Trends. With new Securities and Exchange Commission (SEC) leadership in place, we are watching closely for signs of a fresh regulatory posture toward asset managers. It’s too soon to tell—but for now, stay focused on complying with the rules on the books, preparing to comply with proposed rules that have not been modified or withdrawn, and ensuring that your policies and procedures remain robust.
3. Competitive Pricing Environment Should Continue for Top-Tier Risks. Underwriters say that claim activity remains high, but the rate environment is still competitive. How is this playing out in the market? 

Underwriters are often attempting to increase rates for VC and PE firms that have recent claims payouts or significant issues at the portfolio company level. Top-tier risks with no prior loss history are generally receiving flat renewals or modest rate reductions.

Venture Capital and Private Equity Claims Trends 

1. SPAC Litigation Against Sponsors. Securities class actions involving SPACs have driven significant claims under VC and PE GPL programs in recent years, especially when directors and officers (D&O) insurance runoff limits fall short of settlement demands. As SPAC activity picks up again, we’re watching this trend closely. 

2. Outside Director Liability (ODL) Claims. Outside director liability (ODL) claims have been consistent and common over the years. While the underlying portfolio company’s insurance program should respond first to these claims, well-constructed ODL coverage is a critical backstop to protect firm and individual balance sheets if the company’s insurance has coverage gaps or inadequate limits. 

3. Government Investigation Claims. Over the years, our clients have faced inquiries and investigations from the SEC and other government and regulatory bodies. These claims are not high frequency, but they are often sensitive and high-risk matters. Read the full Guide to get a breakdown of the two main government investigation categories we're seeing.

Underwriters’ Survey Results

Like last year, we surveyed insurance carriers for their views on the GPL insurance market. The Underwriters’ Weigh In survey features separate responses for private equity and venture capital—and includes a comparison with last year’s results.

We cover:

• Rates for primary and excess renewals
• Whether retentions are increasing or decreasing
• The average retention quoted
• Claims frequency and severity
• Where claims typically arise

Here's a preview of one of the responses:

Q1: When looking at primary and excess renewals for private equity firms, what is your team seeing from a rate perspective?

For more expert insights and the full results from our underwriters’ survey, read the complete GPL Looking Ahead Guide and register for the webinar.

Disclaimer: The information contained herein is offered as general industry guidance regarding current market risks, available coverages, and provisions of current federal and state laws and regulations. It is intended for informational and discussion purposes only. This publication is not intended to offer financial, tax, legal or client-specific insurance or risk management advice. No attorney-client or broker-client relationship is or may be created by your receipt or use of this material or the information contained herein. We are not obligated to provide updates on the information contained herein, and we shall have no liability to you arising out of this publication. Woodruff Sawyer, a Gallagher Company, CA Lic. #0329598.