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Venture Capital Asset Protection Insurance in Tennessee

Tennessee’s adviser summary sets a $15,000 minimum net worth for all advisers and separate de minimis conditions for in-state firms. Do not assume an out-of-state threshold applies to a Tennessee-based manager. 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. 2,1

What Is Venture Capital Asset Protection?

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 in Tennessee

  • Check the State Adviser Filing

    Tennessee’s adviser summary sets a $15,000 minimum net worth for all advisers and separate de minimis conditions for in-state firms. Do not assume an out-of-state threshold applies to a Tennessee-based manager. 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

    Tennessee’s in-state and out-of-state exemptions differ; document the adviser’s domicile, client count and public holding-out status before relying on an exemption. 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

    Determine whether the Tennessee manager is in-state before using a client-count exemption. 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

Who Regulates Insurance in Tennessee

Tennessee Department of Commerce and Insurance

TDCI regulates and licenses insurance companies, agents, brokers, surplus-lines agents, and public adjusters. Its complaint process accepts complaints about agents or companies when the policy was written in Tennessee, and its property/casualty unit reviews filed policy rates, rules, and forms. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 5% of gross premium plus 0.175% SLAS transaction fee For Tennessee-home-state surplus-lines policies, TDCI lists a 5% tax on gross premium and a 0.175% SLAS transaction fee on gross premium; the agent receives an invoice and pays both through SLIP. The sources reviewed do not establish that the fee is always separately charged to the policyholder or resolve guaranty-association treatment, so ask your broker to itemize charges and review the policy notice. 7,8

Providers With Documented State Licenses

No provider in Spot’s 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.

Questions to Ask Before You Buy in Tennessee

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

Venture Capital Asset Protection in Tennessee: FAQ

Is the federal venture capital adviser exemption enough for state registration in Tennessee? 1,2

No. The SEC describes an exemption from federal registration for advisers solely to venture-capital funds, while state adviser rules remain a separate question. Tennessee’s adviser summary sets a $15,000 minimum net worth for all advisers and separate de minimis conditions for in-state firms. Do not assume an out-of-state threshold applies to a Tennessee-based manager. Check the applicable state filing status for the adviser and its representatives. 1,2

What Tennessee adviser rule should a VC fund check before buying VCAP? 2,1

The state adviser-registration summary says: Tennessee’s adviser summary sets a $15,000 minimum net worth for all advisers and separate de minimis conditions for in-state firms. Do not assume an out-of-state threshold applies to a Tennessee-based manager. 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 Tennessee include in its VCAP application? 1,3

Include the fund, GP, adviser and management company, plus partners’ portfolio-company board roles. Tennessee’s in-state and out-of-state exemptions differ; document the adviser’s domicile, client count and public holding-out status before relying on an exemption. Ask the insurer to confirm which entities, services and board seats are covered in writing. 1,3

Venture Capital Asset Protection in Other States

Other Coverage in Tennessee

Sources

  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. Tennessee Investment Adviser Registration Information. North American Securities Administrators Association; State investment adviser registration requirements and regulator reference. Accessed 2026-09-28.
  3. tennessee insurance regulator. State insurance regulator; TDCI official insurance-division and consumer pages describe department scope, review units and complaint role. Accessed 2026-09-28.
  4. TDCI Agent/Producer Resources. State insurance regulator; Agent Licensing Section licenses producers, business entities, surplus-lines agents, brokers, and public adjusters; page links to Verify License. Accessed 2026-09-28.
  5. File an Insurance Complaint. State insurance regulator; TDCI accepts online complaints about insurers and agents only for policies written in Tennessee; third-party claimants are directed to call. Accessed 2026-09-28.
  6. Surplus Lines Filing Procedures. Tennessee Department of Commerce and Insurance; Tax Payments section: 5% gross premium plus .175% of gross premium SLAS transaction fee; agents receive quarterly invoices and pay via ACH in SLIP. Accessed 2026-09-28.
  7. Tennessee Public Chapter 446 (2011), T.C.A. §56-14-113. Tennessee Secretary of State; Current tax framework enacted in §56-14-113: 5% applies when Tennessee is the insured’s home state; tax collected from insured in addition to premium. Read with current TDCI filing-procedure page for current fee and SLIP handling. Accessed 2026-09-28.
  8. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. 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.
  14. 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.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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