Varying coverage for varying risks
General Partnership liability risk at the firm level and the portfolio company level can vary significantly. Alleged fiduciary duty of loyalty breaches, insured capacity issues and inconsistent indemnification language can result in gaps in protection and insurance coverage for principals of private equity and hedge funds. If inconsistent policy terms and conditions exist between the various portfolio company D&O policies can result in cost inefficiencies and other uncertainties relative executive protection as a result of merger and acquisition activity.