Find peace of mind with management liability coverage from a company that’s rated “A+” (Superior) by AM Best.* Take a look at some recent claim examples. Remember, every claim is different and coverage may vary.
*Rating affirmed December 15, 2023

Asset Management D&O Coverage: Claims Scenarios

SEC Investigation: A private equity firm received a Subpoena and a Civil Investigative Order from the Securities and Exchange Commission (SEC) requesting documents from the firm in connection with an investigation being conducted by the SEC. The firm hired a lawyer to assist with responding to the SEC’s document request, and expects that the SEC will then seek to schedule interviews with the company’s directors and/or officers. The firm is cooperating with the SEC’s investigation, but does not yet know whether they are the focus of the investigation. Defense costs incurred for this matter could range from $250,000 to $5 million.

Books and Records Request Lawsuit: An investor of a fund that is managed by a private equity firm filed suit against the firm alleging it failed to comply with the investor’s demand for the inspection of books and records. The lawsuit seeks an order requiring the firm to produce the requested documentation, as well as monetary damages, including prejudgment and post-judgment interest and attorney’s fees. Thereafter, the firm produced the majority of the books and records requested by the investor, and is now attempting to schedule early mediation. Defense costs incurred to date are approaching $75,000.

Business Dispute Lawsuit: A private equity firm and a construction company entered into a “hand-shake” deal for the firm to provide a loan to the company to be used to finance a large construction project. The company’s bid for the construction project was not accepted. Instead, another construction company’s bid for the project was accepted. Thereafter, the private equity firm agreed to provide financing to the construction company that was awarded the project. The construction company that was not awarded the project is now suing multiple parties, including the private equity firm and its directors and officers, for fraud, civil conspiracy, and tortious interference.