Woodruff Sawyer Releases 2026 GPL Looking Ahead Guide: What VC and PE Firms Need to Know About Liability Risk

SAN FRANCISCO, Oct. 14, 2025 /PRNewswire/ -- Woodruff Sawyer, a Gallagher Company and full-service insurance brokerage and consulting firm, today released its annual General Partnership Liability (GPL) Looking Ahead Guide, offering venture capital and private equity firms a strategic lens into the liability risks shaping the insurance market heading into 2026.

As a trusted advisor to many of the world's most sophisticated investment firms, Woodruff Sawyer brings deep expertise to bear on the evolving GPL landscape. This year's Guide highlights key forces impacting GPL insurance—from rising defense costs and regulatory uncertainty to shifting claims trends and competitive pricing dynamics.

"GPL insurance is not a quiet corner of the market," said Walker Newell, Senior Vice President, 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."

Key insights from the 2026 Guide include:

• Defense Costs Driving Losses: Regulatory lawyers and high-profile litigators continue to command premium fees, contributing to elevated carrier losses—even as underwriting capacity remains strong.
• Regulatory Watchpoints: With new SEC leadership in place, asset managers face a shifting regulatory landscape. Firms must stay vigilant on compliance while preparing for potential rule changes.
• Pricing Pressures and Claims Activity: Despite insurer exits, the GPL market remains competitive for top-tier risks. However, high claims frequency—especially at the portfolio company level—is prompting selective rate increases.
• Claims Trends to Watch: SPAC litigation, outside director liability (ODL) claims, and government investigations remain top concerns for VC and PE firms. Coverage coordination and advocacy are critical to navigating these exposures.

Underwriters' Survey: What the Market Is Saying

Woodruff Sawyer surveyed leading GPL underwriters to capture their outlook on pricing, retention structures, and claims activity. The results reveal a market in flux:

• Rates and Retentions: Roughly half of underwriters report stable rates for PE renewals, though more cite increases than decreases. Retentions are largely unchanged, with most quoted in the $250K–$499K range. VC firms saw similar trends, though more than 90% of quoted retentions were under $500K.
• Claims Frequency and Severity: Most underwriters report rising claims for PE firms, especially tied to portfolio company bankruptcies, D&O liability, and outside directorship liability. For VC firms, claims trends are mixed—some underwriters report declines, but three-fourths still see increases.
• Where Claims Are Arising: Portfolio company bankruptcies top the list for both VC and PE firms. Notably, D&O liability has overtaken outside directorship liability as the leading source of VC claims.

"Private equity firms face mounting pressure to deliver returns while navigating increasingly complex risks," said Luke Parsons, National Private Equity and Venture Capital Practice Group Leader at Woodruff Sawyer. "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."

To access the full GPL Looking Ahead Guide, including the Underwriters' Survey, visit Woodruff Sawyer or attend the October 15^th webinar.

About Woodruff Sawyer

Woodruff Sawyer, a Gallagher company, is a full-service insurance brokerage and consulting firm, serving emerging tech companies to global giants for over a century. Headquartered in San Francisco, we offer our clients access to a global platform of exclusive resources, tools, and data. For more information, call 844.972.6326 or visit woodruffsawyer.com.

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SOURCE Woodruff Sawyer