General Partnership Liability (GPL)

A general partner's management and fiduciary responsibilities to a limited partnership closely parallel those of the director or officer of 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
  • Conflicts of interests
  • 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 against lawsuits for alleged mismanagement. Misleading statements or omissions to limited partners or third party creditors are a major source of claims against general partners.

The Cayemitte Group has in-depth experience in the General Partnership 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)

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