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Woodruff Sawyer's 2026 GPL Looking Ahead Guide

In an era where liability risks are on the rise, Woodruff Sawyer, a Gallagher Company, has stepped forward with its annual General Partnership Liability (GPL) Looking Ahead Guide for 2026. This publication aims to equip venture capital (VC) and private equity (PE) firms with the necessary understanding of liability risks in an evolving marketplace.

As a reputable insurance brokerage and consulting firm, Woodruff Sawyer leverages its specialized knowledge to highlight key trends that impact GPL insurance. Drawing upon extensive experience, they offer strategic insights into crucial factors shaping the insurance market, including increasing defense costs, shifting regulatory environments, and changes in claims behavior.

Key Findings from the 2026 Guide

1. Rising Defense Costs
According to the Guide, legal fees commanded by top defense attorneys continue to escalate significantly. This trend contributes to larger losses for carriers, even amidst strong underwriting capacity. VC and PE firms need to acknowledge and plan for these mounting defense costs that can eat into profitability.

2. Evolving Regulatory Landscape
With new leadership in the SEC, compliance and regulatory obligations are becoming increasingly complex. Asset managers must stay on their toes to navigate potential changes in regulations and ensure their compliance frameworks are robust enough to withstand scrutiny.

3. Pricing Dynamics and Claims Activity
Even with some exits from the market by certain insurers, competition for high-quality risks remains intense. However, the frequency of claims—especially those arising at the portfolio company level—has led to selective increases in insurance rates. Firms are advised to scrutinize their insurance needs in light of this dynamic.

4. Noteworthy Claims Trends
The report indicates a rise in claims related to Special Purpose Acquisition Company (SPAC) litigation and outside director liability (ODL). In addition, government investigations are a pressing concern for VC and PE firms alike. Effective coverage coordination is essential in managing these risks.

Survey Insights from Underwriters
Woodruff Sawyer further surveyed leading GPL underwriters to gather insights on market sentiment surrounding pricing and claims activity. The survey revealed mixed responses regarding rate stability, with many underwriters acknowledging an increase in renewals for both PE and VC firms.

• - Approximately 50% of underwriters reported stable rates for PE renewals, yet more indicated increases than decreases.
• - Most underwriters quoted retention levels mostly unchanged—with the majority falling between $250K and $499K.
• - Portfolio company bankruptcies are emerging as the leading source of claims for both PE and VC firms. Interestingly, ODL claims have become more frequent than traditional outside directorship claims, highlighting shifting patterns in liability exposure.

Conclusion: Preparing for Future Risks

As VC and PE firms face pressures to enhance returns within a landscape of increasing risks, informed decision-making is more critical than ever. Woodruff Sawyer's 2026 GPL Guide provides an invaluable resource, offering not only insights into current challenges but also tools for structuring smarter insurance solutions that anticipate potential liabilities.

Luke Parsons, National Private Equity and Venture Capital Practice Group Leader at Woodruff Sawyer, emphasizes the importance of strategic foresight: "Our 2026 GPL Guide reflects the depth of experience we bring to the table—helping deal teams structure smarter coverage, anticipate exposures, and protect value across the investment lifecycle."

For further details, the full GPL Looking Ahead Guide including the Underwriters' Survey can be accessed on Woodruff Sawyer's website, and a webinar is scheduled for October 15th to delve deeper into these insights.

About Woodruff Sawyer

Founded over a century ago, Woodruff Sawyer is a full-service insurance brokerage and consulting firm with expertise spanning from emerging tech companies to global enterprises. Headquartered in San Francisco, the company aims to provide clients with access to exclusive resources and comprehensive risk management strategies. Reach out via 844.972.6326 or visit woodruffsawyer.com for more information.