General Partnership Liability insurance is a management liability product similar to directors and officers insurance. The policy provides protection to the past, present and future Directors, Officers, General Partners, Trustees, Managing Members and/or Managers of a Partnership and its subsidiaries.
This insurance covers damages and defense costs in the event a claim is brought against a general partner, director or officer for a wrongful act while acting as a general partner, director or officer of the partnership. The policy typically responds to claims brought by the limited partners alleging mismanagement by the general partner. The policy can also respond to claims brought by regulatory agencies, competitors, suppliers, creditors and other third parties. Like D&O insurance, the policy may also include other coverage features such as employment practices liability and crime insurance.