Chubb to provide expanded insurance to Canadian private equity firms

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.