KRAUTER & COMPANY

P r o d uc t s
GENERAL PARTNERSHIP LIABILITY

UNDERSTANDING 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. Sophisticated investors' expectations of
superior performance, coupled with their insistence on scrupulous adherence to
applicable 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.
KRAUTER & COMPANY
P r o d uc t s
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 coverage’s. Our unique ability to customize protection to meet
specialized needs, provide superior service, and offer exceptional claims handling 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.