Crowdfunding

Tailored industry coverage

 

What is crowdfunding?

Crowdfunding is a way for inventors and entrepreneurs to raise capital for new ventures and products. Investment opportunities are posted online and individuals or institutions can make small investments in the venture or product. 

Capacity

$5M maximum limit.

Coverage & Benefits

Primary coverage

  • Tailored definition of private investment activities to include funds raised by methods pursuant to the JOBS Act.
  • Includes coverage for
    • Inquiries of insured persons,
    • Expenses for crisis management, and
    • Extradition costs.
    • Additional limits available for independent directors.

Secondary coverage includes options to add:

  • Lender Liability, which covers claims related to lending activities,
  • Employment Practices Liability (EPL) to protect the company from lawsuits brought by employees,
  • Fiduciary, covers the liabilities of those responsible for managing employee benefit plans, and
  • Employed Lawyers to cover in-house attorneys.
FAQs
  • Do you have the ability to offer cyber coverage?

    Cyber can be included on this policy as a separate coverage part
     

  • I already buy D&O, why do I need to buy E&O?

    D&O coverage generally excludes claims brought by customers or regulators alleging the failure to provide professional services.  E&O is designed to provide that coverage.
     

  • Does your policy respond to an informal regulatory investigation?

    While informal investigations do not traditionally meet the definition of claim, our policy can provide defense coverage for insured persons to respond to informal regulatory investigations.
     

  • Is there coverage provided for insured persons serving on the Board of Directors of a portfolio company?

    There is Side-A coverage for such persons in excess of the portfolio company’s D&O insurance and ability to indemnify the insured person.

Related products

Package Crowdfunding coverage with the following products: Cyber and Management Liability.

Document finder

Looking for a document? Find it here or check out our other resources.

View resource center

*Required
Refine Search
${ resultCount }0 documents meet your criteria (Select from options above to return the items you need)
A link to "${ copiedDocument.Title }" has been copied to your clipboard
Document Share ${ column.display_name }
${ document.Title } Copy Link ${ document[column.column_mapped_to] }
PageShowing page ${ currentPage } of ${totalPages}

Claims scenarios 

Not sure what risks our product covers? We’ve brought some scenarios to life.

Family office

A family office provides multi-generational financial planning services to the family of the founder of a successful business. When the patriarch of the family dies unexpectedly, the family office tasks an outside business valuation specialist with valuing the business for sale. The family later determines that the valuation was low, and they sue the valuation specialist as well as the family office for selecting the firm. 

Family office

A family office provides multi-generational financial planning services to the family of the founder of a successful business. When the patriarch of the family dies unexpectedly, the family office tasks an outside business valuation specialist with valuing the business for sale. The family later determines that the valuation was low, and they sue the valuation specialist as well as the family office for selecting the firm.