Financial Institutions: General Partnership Liability

Increased litigiousness in the business community coupled with an exponential rise in claims frequency and severity have created an unprecedented need for general partners liability insurance protection. ACE offers comprehensive coverage for general partners in their day-to-day activities, overseeing limited partnerships and other investment and/or operating vehicles.

Benefits:

• General partners underwriting expertise
• Market stability and capacity
• Exceptional claims service
• Superior coverage
• Financial strength

Coverage:

• Protection of general partners in lawsuits alleging a breach of duty, neglect, error, omission, and/or misstatement or other wrongful acts
• Narrow insured versus insured exclusion which allows coverage for securities claims brought by security holder; wrongful employment practices; claims seeking contribution or indemnity; or claims brought by a former executive if more than four years past employment with the company
• Pollution exclusion with a Side A carve out
• Broad definition of insured, including not only natural person general partners of limited partnerships but also directors, trustees and officers of a corporation or business trust acting as corporate general partner
• Automatic coverage for newly created or acquired limited partnerships and limited liability companies
• Coverage applies to the named insured including the limited partnerships, even in the event of bankruptcy
• Broad definition of claim, including written demands, civil, criminal and administrative proceedings, arbitrations and formal investigations of insured persons
• The insured has the right to choose counsel; no panel counsel is imposed
• Priority of payments is provided, so that policy proceeds will be paid first to non-indemnified loss and thereafter for indemnified loss

Limits:

• Limits of up to $25 million are available on both a primary and excess basis.

Typical Client Profile:

Our typical client profile includes:

• Partnerships
• Master Limited Partnerships
• Real Estate Investment Trusts
• Private Equity
• Venture Capital Firms