General Partners’ Liability Coverage

This type of insurance is also known as General Partners’ Liability and Limited Partnership Reimbursement coverage.

A general partner’s management and fiduciary responsibilities to a limited partnership closely parallel the director’s or officer’s to a corporation. Exposure occurs when general partners become the financial managers of a limited partnership. The directors and officers of corporate general partners share this type of exposure.

Some causes of claims are as follows:

  • Untrue written or oral statements made by the general partners.
  • Breach of fiduciary duty.
  • Incomplete disclosure of facts.
  • Omission or misleading statements in the offering memorandum.
  • Selling of unregistered limited partnership interests.
  • Conflict of interest.
  • Failure to devote adequate time to the partnership.
  • Appointment of drilling contracts without proper prior investigation as to their experience.
  • Failure to minimize risk factors that prove detrimental.