1. FINANCIAL RISKS
Private Equity
Liability Insurance
Comprehensive Protection for Private Equity Companies
Private equity companies are exposed to
insurable loss from a number of first party
and third party risks.
JLT has developed specific insurance policies designed to
address the unique exposures facing private equity
companies. Such policies will respond to claims from the
company's own investors and to those suits brought by the
shareholders of companies who constitute the assureds'
managed investments. Additionally, first party crime risk can
also be transferred as part of the insurance package. The
underlying liability risks facing private equity companies
generally arise from the following allegations:
• misrepresentation, negligent mis-statement
• breach of duty as general partner/director or officer
• breach of regulatory rules/statute
• failure to maintain equity between different funds
• breach of the partnership agreement/investment
management agreement
• negligent investment decisions
• negligent management of investments
• fraud or dishonesty.
The purchase of comprehensive liability coverage both
protects the assured in the event of litigious action and
increases competitiveness when marketing to investors.
JLT has access to over £100m of private equity liability
insurance capacity. This capacity is available through a
combination of Lloyd’s syndicates and London company
markets and is designed for all types of private equity
companies. Private equity clients are able to benefit from
JLT's specialist knowledge, gained from a global private
equity client base, bringing experience, imagination and
flexibility to an insurance programme. We offer a variety of
proprietary forms which can be further tailored to suit a
client’s individual requirements.
What does private equity
insurance cover?
A. Professional liability
B. Outside director liability
C. General partner liability
D. Directors’ and Officers’ liability and company
reimbursement insurance
E. Comprehensive crime coverage
