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)