Management Liability

General Partnership Liability

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.

A General Partnership Liability policy protects general partners of limited partnerships for lawsuits against them for alleged mismanagement. Misleading statements or omissions to limited partners or third party creditors are a major source of claims against general partners.

TCG‘s has in-depth experience in the General Partners Liability arena and places coverage for the following types of entities:

• Limited Partnerships
• General Partnerships
• Joint Ventures
• Corporate D&O/Partnership D&O (combination)
• Trusts
• Limited Liability Companies (LLC's)
• Limited Liability Partnerships (LLP's)