It goes without saying that purchasing insurance is never high on any venture capitalist’s list of “my favorite things”.  However, we all recognize the pitfalls that surround lack of coverage, inadequate insurance limits, and other gaps if these issues are not addressed.  Yet, often, there is an “out of sight, out of mind” security that comes when portfolio companies state that they have purchased some sort of insurance to meet the requirements of the term sheet.  But what risks can evolve as these companies mature and how can you better assess your scope of exposure?

John Moccia of Rollins Insurance, a member of TechAssure, provides a very concise set of insurance guidelines useful to both VC and portfolio companies for consideration at each stage of development.   We encourage all venture firms to take a look.