Insurance brokerage and consulting firm Woodruff Sawyer, a Gallagher company, has released its 2026 General Partnership Liability (GPL) Looking Ahead Guide, outlining key trends that venture capital (VC) and private equity (PE) firms should watch for as liability risks grow more complex heading into 2026.
The annual report notes that the GPL insurance market remains competitive but under mounting pressure from increased claims activity, regulatory shifts, and rising defense costs. The firm’s findings are based on market analysis and an underwriters’ survey exploring pricing dynamics, retention trends, and claims frequency.
“GPL insurance is not a quiet corner of the market,” said Walker Newell, senior vice president for management liability at Woodruff Sawyer. “It’s a high-stakes risk transfer tool that demands the same rigor and foresight our clients bring to their investments.”
Among the top trends identified, defense costs continue to weigh heavily on insurers. Regulatory and litigation lawyers are commanding higher fees, leading to greater carrier losses even as underwriting capacity stays strong.
Another key factor is regulatory uncertainty under the new Securities and Exchange Commission (SEC) leadership. The report advises firms to maintain strict compliance with existing rules and prepare for additional oversight. “With new SEC leadership in place, asset managers face a shifting regulatory landscape,” the guide states.
Despite this, pricing for GPL coverage remains relatively stable for firms with strong risk profiles. Underwriters reported that top-tier VC and PE firms with clean loss histories generally received flat renewals or modest rate reductions. However, organizations with significant claims or portfolio company issues are seeing selective increases.
Claims activity remains an area of concern. According to Woodruff Sawyer, portfolio company bankruptcies, SPAC litigation, outside director liability, and government investigations are the most common sources of losses. D&O liability has now overtaken outside directorship liability as the leading cause of VC claims.
Survey data reveal that roughly half of underwriters reported stable renewal rates for PE firms, though slightly more cited rate hikes than decreases. Most retentions ranged between $250,000 and $499,000, with 90% of VC firms’ quoted retentions under $500,000.
“Private equity firms face mounting pressure to deliver returns while navigating increasingly complex risks,” said Luke Parsons, national private equity and venture capital practice leader at Woodruff Sawyer.
What are your thoughts on the recent findings? Share your insights in the comments below.
