Coverage line

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What Venture Capital Asset Protection Insurance Requirements Apply in Massachusetts?

Massachusetts requires a $10,000 surety bond when a registered adviser has discretion over client funds, according to its registration summary. Do not treat that bond as coverage for allegations about fund management. The SEC exemption from federal registration is not a blanket state exemption, so confirm the adviser’s state filing position and list the correct entities for insurance.

What Is Venture Capital Asset Protection Insurance?

Venture capital asset protection can combine management and professional liability for a venture or private-equity fund and its managers. The label is not a standard coverage package, so check which funds, partners, board roles and claims the quote includes. Read the national Venture capital asset protection guide.

What to Watch for With Venture Capital Asset Protection in Massachusetts

Check the State Adviser Filing
Massachusetts requires a $10,000 surety bond when a registered adviser has discretion over client funds, according to its registration summary. Do not treat that bond as coverage for allegations about fund management. Confirm the regulator-facing status of the adviser entity; do not assume SEC exempt-reporting treatment settles it. ^2,¹
Map Each Fund and Manager Entity
If the adviser exercises discretion in Massachusetts, separate its state bond from VCAP and ask whether the policy includes each fund and management company. Give the broker the fund, GP, adviser and management-company chart, then ask how the policy coordinates with each entity’s indemnification obligations under its governing documents and organizing law. ^3,¹
Match the Policy to Fund Work
Keep any Massachusetts adviser surety bond outside the liability tower calculation. Ask for a written schedule of funds, management entities, partner board seats and covered professional services; the product label does not establish those terms. ^1,²

Providers With Massachusetts License Records

No provider in our research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Who Regulates Insurance in Massachusetts?

Massachusetts Division of Insurance

The Massachusetts Division of Insurance licenses insurers and producers, reviews rates and forms, and handles insurance complaints. Use the State Based Systems lookup for producers, agencies, and surplus-lines brokers. For insurer status, use the DOI’s separate licensed or approved company lists, including the eligible surplus-lines company list. Before filing a complaint, contact the insurer or producer; if the response is unsatisfactory, submit the online form with supporting papers. The DOI says not to use the form for ongoing litigation. ^4,^5,^6,⁷

Website: Regulator website
License lookup: Search licensed producers
Complaints: File a complaint
Phone: 617-521-7794

Surplus-Lines Tax and Stamping Office in Massachusetts

Reported tax rate. 4% of gross premiums less gross return premiums on risks or exposures in Massachusetts or another state when Massachusetts is the insured’s home state. ^8,^9,^10,¹¹

A diligent effort to place coverage with admitted insurers is generally required before surplus-lines placement through a specially licensed Massachusetts broker. The narrow §224 large-commercial exception is described in the note below.

Multi-state surplus-lines tax dates and exceptions: For this rule, home state means the state of the insured’s principal place of business or, for an individual, principal residence; if 100% of the risk is outside that state, home state is where the greatest percentage of taxable premium for that insurance contract is allocated. For multi-state policies effective on or after August 10, 2018, the Division of Insurance says the 4% tax applies to gross premium regardless of whether risks are inside or outside Massachusetts when Massachusetts is the insured’s home state. For earlier effective dates, Massachusetts risk portions are taxed at 4%, while out-of-state portions are taxed at the rates for their allocated premium. The Division lists exceptions for policies issued to the Massachusetts Bay Transportation Authority, federal credit unions when they are the purchaser, and tribal lands on reservations. Brokers still make required filings for exempt policies. Tax-exempt status alone is not specifically excluded. ^8,⁹
Narrow large-commercial placement exception: Section 168(b)(iv) exempts the diligent-effort affidavit and excess-placement condition in §168(b)(iii) only for a §224 qualifying commercial risk or policyholder. The policyholder must acknowledge in writing that the insurer is not admitted and that the Massachusetts Insurers Insolvency Fund will not pay an insolvency loss. Section 224 eligibility is limited to a corporation, partnership, trust, sole proprietorship, or other business or public entity with at least $30,000 in aggregate property-and-casualty premiums, excluding workers’ compensation. The holder must certify its election and understanding of limited regulatory oversight and certify at least two criteria: net worth of $10 million; net revenue or sales of $5 million; more than 25 employees per individual company OR more than 50 employees per holding company aggregate; a nonprofit or public entity with annual budget or assets of $25 million or more; a municipality with population of 20,000 or more; or retention of a risk manager who is either a full-time employee or retained by the policyholder; that person must be licensed and hold one of these qualifications: certified insurance counselor, chartered property and casualty underwriter, associate in risk management, certified risk manager, or licensed insurance advisor in property and casualty. ^10,¹¹

Questions to Ask Before You Buy Venture Capital Asset Protection in Massachusetts

Which adviser, management company, general partner and funds does this proposal insure by name?
Does the policy include outside-director protection for partners serving on portfolio-company boards?
Are limited-partner allegations about fund disclosures or governance within the covered professional services?

Venture Capital Asset Protection Insurance in Massachusetts: FAQ

Is the federal venture capital adviser exemption enough for state registration in Massachusetts?

No. The SEC describes an exemption from federal registration for advisers solely to venture-capital funds, while state adviser rules remain a separate question. Massachusetts requires a $10,000 surety bond when a registered adviser has discretion over client funds, according to its registration summary. Do not treat that bond as coverage for allegations about fund management. Check the applicable state filing status for the adviser and its representatives. ^1,²

What Massachusetts adviser rule should a VC fund check before buying VCAP?

The state adviser-registration summary says: Massachusetts requires a $10,000 surety bond when a registered adviser has discretion over client funds, according to its registration summary. Do not treat that bond as coverage for allegations about fund management. Separate this filing or financial-responsibility rule from liability coverage, then ask the broker whether the policy covers the adviser, GP, management company and funds. ^2,¹

Which entities should a venture fund in Massachusetts include in its VCAP application?

Include the fund, GP, adviser and management company, plus partners’ portfolio-company board roles. If the adviser exercises discretion in Massachusetts, separate its state bond from VCAP and ask whether the policy includes each fund and management company. Ask the insurer to confirm which entities, services and board seats are covered in writing. ^1,³

Sources

19 documents, numbered as cited. Open the sources

Sources for Massachusetts Venture Capital Asset Protection

1
Private Fund Adviser Overview. U.S. Securities and Exchange Commission; Federal exemptions for advisers solely to venture capital funds; state registration may also apply. Accessed 2026-09-28.
2
Massachusetts Investment Adviser Registration Information. North American Securities Administrators Association; State investment adviser registration requirements and regulator reference. Accessed 2026-09-28.
3
Massachusetts Legal Materials. Legal Information Institute, Cornell Law School; Constitution and Legislation; official state statutes portal. Accessed 2026-09-28.
4
Division of Insurance. Massachusetts Division of Insurance; Official DOI overview: insurer/producer licensing, rates/forms review, complaints and solvency oversight; Contact Us / phone. Page text retrieved in search rendering; direct fetch returned 403. Accessed 2026-09-29.
5
Find Insurance Agents, Agencies and Other Licensees. Massachusetts Division of Insurance; SBS online-verification description and enumerated classes: producers, agencies, public adjusters, appraisers, advisers, reinsurance intermediaries, surplus-lines brokers, life-settlement brokers; insurers are not listed. Page text retrieved in search rendering; direct fetch returned 403. Accessed 2026-09-29.
6
Massachusetts Licensed Insurance Companies. Massachusetts Division of Insurance; Directory headings distinguish Massachusetts Licensed or Approved Companies and Massachusetts Eligible Surplus Lines Companies. Page text retrieved in search rendering; direct fetch returned 403; no company row checked. Accessed 2026-09-29.
7
DOI Online Insurance Complaint Form. Massachusetts Division of Insurance; Introductory instructions: contact insurer/producer first; if unsatisfied complete form and attach papers; not for ongoing litigation. Page text retrieved in search rendering; direct fetch returned 403; interactive form not opened/submitted. Accessed 2026-09-29.
8
M.G.L. c.175, §168. Massachusetts General Court; Current statute directly opened: §168(a) home-state definition and greatest-taxable-premium fallback if 100% risk outside principal-business state; §168(d)(2) 4% on gross premiums less gross returns for risks/exposures in MA or elsewhere if MA is home state. Accessed 2026-09-29.
9
Surplus Lines Insurance. Massachusetts Division of Insurance; Official FAQ: “What is the premium tax rate on surplus lines insurance written in Massachusetts?” (complete answer: post-Aug. 10, 2018 flat 4% gross-premium rule and pre-date state allocation); “Are any surplus lines premiums exempt from the 4% surplus lines tax?” (complete answer: MBTA, federal credit unions when purchaser, tribal lands on reservations); “If an insured is granted tax-exempt status…” (complete answer: §168 does not specifically exclude tax-exempt organizations). Complete relevant FAQ answers appeared in official page body returned by search rendering; direct URL open returned 403. Accessed 2026-09-29.
10
M.G.L. c.175, §168. Massachusetts General Court; Official statute directly opened: §168(b)(iii)–(iv), lines 62–66. Complete scope: affidavit of diligent admitted-market effort and placement only of the amount unavailable from admitted companies; clause (iii) does not apply to a §224 qualifying commercial risk/policyholder with written understanding of nonadmitted status and no Massachusetts Insurers Insolvency Fund payment for insolvency. Accessed 2026-09-29.
11
M.G.L. c.175, §224. Massachusetts General Court; Official statute directly opened: §224(a), lines 49–62. Complete large-commercial definition and all six criteria reviewed, including criterion (3): more than 25 employees per individual company OR more than 50 employees per holding company aggregate. Accessed 2026-09-29.
12
Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
13
Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
14
Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
15
About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
16
Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
17
About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
18
Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
19
Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.