Fund Liability Facility
General Partner Liability Insurance Facility
Properly tailored GPL insurance can be an asset, as well as a powerful safeguard for individuals and the fund.
General Partner Liability (GPL) insurance coverage for alternative asset managers is intended as a last line of defense to protect the General Partners and employees of a firm’s management company. It provides a backstop to the Limited Partners’ indemnification obligations in the event of litigation.
Most funds currently purchase some type of Fund Liability insurance — usually a combination of Directors & Officers (D&O), Errors & Omissions (E&O), Employment Practices Liability (EPL), and Fiduciary Liability (Fiduciary) coverage. Understanding the nuances among various policy forms can be a daunting task. Vanbridge’s Financial Institutions group is uniquely positioned to guide you through the process. We are dedicated to placing GPL coverage for alternative asset managers, including private equity firms, hedge funds, venture capital firms, REITs, family offices, as well as firms with hybrid structures. We have the experience and carrier relationships needed to drive aggressive results in an efficient manner.
A robust GPL policy includes the following coverages:
Management Liability: Covers claims alleging any actual or alleged breach of duty, neglect, error, misstatement, misleading statement, omission or act by an Insured Entity or an Insured Person in such capacity
Outside Directorship Liability: Covers claims against an Insured Person serving at the request of an Insured Entity as a director, officer, trustee, etc. of an Outside Entity, such as a non-profit or portfolio company
Professional Liability: Covers claims alleging any act, error, or omission in the course of performing investment management services, including, but not limited to, portfolio management, administrative services, asset valuation services, asset allocation services for or on behalf of Funds and Portfolio Companies (including formation and dissolution)
Employment Practices Liability: Covers Insured Entities and Insured Persons for allegations of discrimination, sexual harassment, wrongful termination, retaliation, etc. in the workplace
Fiduciary Liability: Covers Insured ERISA Plans and Plan trustees with respect to claims alleging errors and omissions in plan administration
Common GPL Claims Scenarios include asset defaults, deal failure/inadequate consideration, tortious interference and other contract-related causes of action, regulatory investigations and/or compliance concerns, fund mismanagement, style drift, fraudulent conduct, amongst others. An appropriate policy contains broad policy wording in order to ensure that a variety of claims scenarios are covered.
Our team has a deep understanding of the alternative asset management space, as well as the ability to leverage the insurance marketplace to deliver best-in-class solutions for our clients.