Chubb is now offering expanded insurance coverage to private equity firms in Canada.
The comprehensive insurance solution combines four management liability coverages relevant to private equity firms – management (D&O), outside directorship, professional services (E&O), and employment practices liability – into one policy.
According to a release, the coverage extensions include:
- Portfolio company pre-acquisition defence costs that could arise from lawsuits brought against the private equity firm as controlling shareholder of a portfolio company. The coverage will apply even when the alleged acts of the portfolio company occurred before the private equity firm’s acquisition date.
- Crisis costs incurred by the private equity firm. Costs covered include hiring a public relations firm to alleviate reputational damage resulting from the termination of a key executive.
- Defence costs incurred by a private equity firm executive as a result of his or her being interviewed by regulatory enforcement agencies.
“Private equity firms in Canada face a variety of unique and personal liability exposures due to their wide range of responsibilities. As a result, they need a comprehensive insurance product that addresses their ever-evolving activities,” said Chubb vice-president of North America financial lines Carol McLellan.