General Partnership Liability

Hedge funds and private investment funds may be the investment vehicles of choice for many investors, but with a reputation for volatility, they also can become easy scapegoats during global economic downturns

Investors' expectations of superior performance, coupled with standards of care, good faith, and fiduciary duty, create a wide array of liability exposures for the funds, their general partners, and affiliated service providers. The reluctance of most insurers to offer coverage for hedge funds and other private investment funds leaves financial services professionals exposed to potentially enormous risks.
Coverages include:

Entity Coverage for Funds

  • Covers hedge funds and private investment funds for claims arising from the operation and management of the funds. Such claims may be brought by limited partners, creditors, competitors, regulatory agencies, and companies in which the funds invest.
  • Omnibus fund coverage (coverage with no prior reporting requirement for any fund that is created or sponsored by any named insured during the policy period) is provided automatically.

General Partners Liability Coverage

  • Protects the general partner and fund manager(s), in their professional or fiduciary capacities, for claims brought by limited partners, creditors, competitors, regulatory agencies, and companies in which the funds invest.

Directors and Officers Liability Coverage

  • Protects all directors, officers, trustees, and members of the fund's Board of Management for claims arising out of the performance of their duties.

Professional Liability Coverage

  • Broadest professional service insuring clause available for the funds. This includes coverage for the fund's general partner, directors, officers, trustees, members of the Board of Management, and employees. The policy also includes vicarious liability coverage for actual or alleged wrongful acts of outside contracted service providers.
  • Protects affiliated service providers and their directors, officers, trustees, members of the Board of Management, and employees for claims arising from professional services rendered on behalf of the fund

WHY KRAUTER GENERAL PARTNERSHIP LIABILITY?
Krauter & Company’s financial services industry experience allows us to offer insurance protection for hedge funds and private investment funds with a comprehensive portfolio of tailored coverages. Our unique ability to customize protection to meet specialized needs, provide superior service, and offer exceptional claims management allows us to stand in the forefront of the insurance industry.

MORE INFORMATION? CONTACT US.
For more information about Krauter & Company’s GPL capabilities and professionals, send your request to: info@krautergroup.com

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