How a West Coast Private Equity Firm Acheived More Than 10 Meaningful Insurance Coverage Enhancements

West Coast Private Equity Firm

Renewal Date

12/31

Business Type

Private Equity

Firm Size

$5B AUM

D&O/E&O Limit

$15M

Self-Insured Retention

$500,000

The Problem

The client, a west coast private equity firm, engaged Concertiv to review their Management/Professional Liability (D&O/E&O) policies ahead of their 12/31 renewal. During initial meetings and onboarding, the client disclosed that they had been working with their incumbent broker, a mid-sized regional firm based in Denver, for over a decade. This broker had consistently managed the renewal of the client’s entire insurance program (P&C, benefits, etc.) and had built a strong working relationship with the client. While confident in the broker’s capabilities and their existing policies, the client sought a second opinion from Concertiv for peace of mind.

The Solution

Comprehensive Policy Review and Diagnostic Analysis

Concertiv conducted a thorough review and diagnostic analysis of the client’s primary and excess policies. Despite findings that the policies had adequate limits based on peer benchmarking, a favorable self-insured retention, and competitive premium rates, Concertiv uncovered several material gaps in coverage that the incumbent broker had overlooked.

Collaboration with Broker and Underwriters

Following a detailed debrief with the client to share the findings, Concertiv worked on their behalf to approach the broker and request that these gaps be addressed during renewal negotiations. To facilitate this process, Concertiv provided sample policy language to address several issues, as requested by the underwriter. This collaboration between Concertiv, the broker, and the underwriter ensured that all identified gaps were rectified.

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The Results

Defense Costs: Greater Flexibility in Legal Representation

$750/hour legal fee savings

Concertiv removed the restrictive “Panel Requirement,” allowing the client to choose any law firm without rate caps. Previously, the insurer covered only $750/hour, forcing the client to pay the difference for top-tier firms charging $1,500–$2,000/hour. The revised policy ensures full coverage of customary rates above the self-insured retention, eliminating out-of-pocket costs and potentially saving millions in a prolonged case.

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Broader Coverage for Informal Investigations

Concertiv removed restrictive language that previously excluded coverage for informal investigations, such as document production requests and depositions, unless a formal regulatory proceeding was initiated. Without this change, the client would have been responsible for all legal costs associated with these inquiries. Given rising defense attorney rates, similar cases have resulted in legal fees exceeding $1.5M. The revised policy ensures coverage for these common regulatory matters, significantly reducing financial exposure.

Improved Settlement & Defense Flexibility

Concertiv secured policy changes allowing the client to:

Settle claims up to $250K without insurer approval.

Incur up to $250K in defense costs without prior consent.

Previously, insurer approval was required for all legal expenditures, potentially delaying resolution. Since the client is responsible for the first $500K in self-insured retention, these changes provide greater control over legal strategy and up to $250K in savings.

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Reduced Risk of Late Claim Denials

Protecting up to $15M in coverage

Concertiv narrowed the list of executives required to report claims from a broad group to just the CFO and General Counsel. Previously, insurers could deny coverage based on technicalities around who knew what and when. This change clarifies reporting obligations, reducing the risk of late claim denials and ensuring the client’s $15M in coverage remains intact.

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Eliminated Risk of Policy Rescission

Concertiv secured non-rescindable policy language, preventing insurers from canceling coverage due to a misstatement by a single insured individual. Previously, a past or present executive’s error could have voided the firm's $15M in coverage. Now, coverage remains intact, ensuring long-term policy stability when it's needed most.