The Hartford Private Equity Choice Policy is designed to safeguard private equity funds and protect fund managers from the types of exposure arising from their different roles as professional investment adviser, fiduciary, and employer. The company said the policy combines the basic types of liability protection that private equity firms need, including fund management liability coverage, with updated market-specific policy wording and optional features, like fiduciary liability coverage.
“Managing a private equity fund offers a significant opportunity for financial reward, but the risk of costly litigation can also be substantial,” said Amit Davé, assistant vice president of financial products underwriting for The Hartford, in a news release. “Lawsuits can arise from many sources, including limited partners, portfolio companies and their shareholders, and even a firm’s own employees.”
The Hartford said the offering features:
- allocation provisions that delineate how the advancement and allocation of defense costs are handled separately from the allocation of damages;
- a multi-faceted definition of professional services; and
- a provision that specifies whose knowledge is relevant to determine when the insured has a notice of claim.
More information is available at http://www.hfpinsurance.com.