Private Equity firms engage in activities from startup equity financing to the buy-out of a portfolio company to advising or serving on the board of directors. Such a wide range of responsibilities creates unique personal and business exposures that could result in third party lawsuits for performing or failing to perform these functions. However, Chubb has a solution.
Coverage Highlights
Coverage
Coverage extensions
- Portfolio company pre-acquisition defence costs resulting from lawsuits brought against the private equity firm as controlling shareholder of a portfolio company
- Crisis cost incurred by the private equity firm in hiring a public relations firm to mitigate potential reputation damages as a result of the termination of a key executive
- Defence costs incurred by a private equity firm executive resulting from his or her being interviewed by regulatory enforcement agencies
Key Professional Services Coverage
- Customary advice to help develop portfolio companies
- Extending or refusing to extend credit
- Portfolio company financings, buyouts, including disputes due to breaches
- Winding down/liquidating a portfolio company
Benefits
- Four types of coverage in one policy:
- Management Liability
- Outside Directorship Liability
- Professional Services Liability
- Employment Practices Liability
- In-depth understanding of private equity firms
- Ability to meet locally and develop customized solutions across the nation
- Reputation for providing best in class services
- Consistently ranked among the highest for financial stability
Related Material
Get to Know Chubb’s Private Equity+SM
As a pioneer in the development of comprehensive blended coverage for Private Equity+SM Firms dating back to 1997, Chubb has a deep understanding of emerging private equity exposures and continuously strives to develop market-leading coverage enhancements to address these unique concerns.