Private equity investment through the EIS and SEIS schemes has become increasingly popular in recent years and a vital boost to the British economy. However, in the eyes of the law and the Financial Conduct Authority such investment remains a “high risk” activity.

In an increasingly litigious age dominated by a culture of blame and tight regulation, professional advisers, managers and executives are vulnerable to claims by aggrieved investors who have allegedly suffered financial losses through the negligent selection, management and governance of their EIS and SEIS investments.

EISA members are therefore in need of effective insurance cover to protect them against such claims. In some cases, this will also be a regulatory requirement. However, the private equity sector remains a mystery to many insurance professionals.

This is where MFL can help.



UK-based expert support, online and on the phone. Specific Claims and Risk Management advice, along with technical bulletins are provided throughout the policy period.


MFL is trusted by thousands of Professionals.


Quotations can be obtained by completing the custom proposal form, which has been tailored to the specialist activities and advice of the Private Equity profession.

Your Profession. Covered!

Using our extensive knowledge and understanding of the professional, managerial and financial risks associated with the various stages of the private equity investment process, we have designed exclusive and innovative insurance solutions for Professional Indemnity Insurance and Directors’ & Officers’, in conjunction with our panel of insurers, to cover EISA members against the principal risks.

Professional Indemnity Insurance

Protection for your business if a client alleges negligent acts, errors/omissions/actual negligent acts or offered poor advice.

Management Liability Insurance

Financial support for claims made against the company, its senior staff or its Directors’s & Officers’

Protect your office and Equipment

Add our Office Insurance policy to provide cover for business premises and equipment against disasters such as a flood or fire, accidents, acts of vandalism and burglary.

Cyber Cover Insurance

Cyber Cover offers assistance to you and third parties if a Cyber Event occurs.

Fidelity Insurance

Provides cover for loss of money and other property resulting from fraudulent or dishonest acts committed by an employee or volunteer.

Liabilities Insurance

Public and Employers’ Liability Cover. This can come standard with Office Insurance Policies too.

Fleet Insurance

Insurance to keep your vehicles and surveyors on the road.

EISA Members Insurance Quote

Why MFL?

We are a specialist insurance broker with a wealth of knowledge to the Private Equity Profession.
We are independent, meaning we have the flexibility to design our services around you, and access the insurer markets we need to deliver competitive insurance regardless of the size of your practice.
Competitive quotations from our insurer partners.
You will have a dedicated team of brokers looking after you, with a support team on hand to deal with any claims and risk management issues you have.
Regular blogs and bulletins which provide updates on market conditions, risk management, claims examples, etc.

Claims Scenarios

Professional Exposures

The process of arranging a single EIS investment, or establishing an EIS or SEIS scheme, creates a number of potential claims scenarios based on professional negligence in the event of financial losses incurred by the investors:

  • Investors will rely on an Information Memorandum or an Investment Teaser as the basis of their decision to invest (plus their own due diligence). If the information contained within such documents is held to be misleading or inaccurate, claims may be made against those responsible for their content.
  • Claims may arise if investments in an EIS or SEIS fund are allegedly made outside the stated parameters in the IM and subsequently perform poorly.
  • Claims for professional negligence may be made for mismanagement of an EIS or SEIS fund, including inadequate due diligence of potential investment targets and/or inappropriate or unsuitable investment recommendations or decisions by the Advisory Committee or the Fund Manager.
  • Claims may also arise further down the line from disputes regarding the valuation of investments, exit strategies or potential conflicts of interest.
Corporate Governance Exposures

Personal liabilities for breaches of managerial or fiduciary responsibilities may also be incurred by the directors and officers of EISA member firms, either in their primary roles on the board of their own companies, or in their roles as directors of fund entities or investee companies. For example:

  • Liability for breach of fiduciary duty in their role as directors and officers, including responsibility for “wrongful trading”, company mismanagement or claims by creditors for the debts of the company in the event of insolvency.
  • Allegedly negligent consultancy or advice provided to the management team of the investee companies (such claims are often based on both professional and managerial liability).
  • Individual responsibility for the content of an IM, including the documentation prepared for the purposes of an exit via an Initial Public Offering (IPO).
  • Personal liabilities arising from claims for breach of trust against trustees of funds established on such a basis.
Crime & Financial Exposures

Crime & Financial Exposures The management and administration of private equity investments also carries with it exposure to potential fraudulent activity, either by the parties involved in the process or by external fraud, particularly through computer systems and the internet.

In addition, cyber activity can give rise to exposure to third party liability to others as well as significant costs arising from interruptions to businesses.


Contact our friendly team today to discuss your insurance needs. Whether you call us for a chat or drop us an email. We will aim to respond within 24 working hours.

We look forward to helping you find what you’re looking for.

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Monday to Friday 09:00 to 17:00

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