Private equity investors face unique challenges when procuring or renewing their liability insurance programs. For example, investors typically must complete lengthy applications or sign warranty and representation letters from their prospective insurers that inquire into knowledge by any potential insured as to any acts or omissions that could potentially give rise to a claim. These overly broad, and often vague, inquiries are problematic for private equity investors who would theoretically have to interview every employee, manager or director at every subsidiary, fund and portfolio company (if insureds) to discern whether any person has knowledge of such an act or omission. Hunton insurance coverage attorneys Syed S. Ahmad and Andrea DeField recently authored an article in Bloomberg Law Securities Regulation & Law Report in which they address this issue and others as part of their Top 5 Coverage Issues Private Equity Investors Should Consider.
