Those are usually covered under &quot;reps and warranties&quot;. From what I understand, even if you do &quot;lie&quot; (no one really lies, they just bend the truth...if you do legitimately lie, it&#x27;s fraud and it&#x27;s a big deal) there&#x27;s basically insurance against it (formerly called &quot;representations and warranties&quot;). No VC I know of ever purchases it, but PE do from time to time.