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


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