FINANCIAL RISKS

Private Equity Liability InsuranceComprehensive Protection for Private Equity Companies Private equity companies are exposed to

insurable loss from a number of first party

and third party risks.

JLT has developed specific insurance policies designed to

address the unique exposures facing private equity

companies. Such policies will respond to claims from the

company's own investors and to those suits brought by the

shareholders of companies who constitute the assureds'

managed investments. Additionally, first party crime risk can

also be transferred as part of the insurance package. The

underlying liability risks facing private equity companies

generally arise from the following allegations:

• misrepresentation, negligent mis-statement

• breach of duty as general partner/director or officer

• breach of regulatory rules/statute

• failure to maintain equity between different funds

• breach of the partnership agreement/investment

management agreement

• negligent investment decisions

• negligent management of investments

• fraud or dishonesty.

The purchase of comprehensive liability coverage both

protects the assured in the event of litigious action and

increases competitiveness when marketing to investors.

JLT has access to over £100m of private equity liability

insurance capacity. This capacity is available through a

combination of Lloyd’s syndicates and London company

markets and is designed for all types of private equity

companies. Private equity clients are able to benefit from

JLT's specialist knowledge, gained from a global private

equity client base, bringing experience, imagination and

flexibility to an insurance programme. We offer a variety of

proprietary forms which can be further tailored to suit a

client’s individual requirements.

What does private equityinsurance cover?A. Professional liability

B. Outside director liability

C. General partner liability

D. Directors’ and Officers’ liability and company

reimbursement insurance

E. Comprehensive crime coverage

Lloyd's Broker. Authorised and Regulated by the Financial Services Authority. A member of the Jardine Lloyd Thompson Group. Registered Office: 6 Crutched Friars, London EC3N 2PH. Registered in England No. 01536540. VAT No. 244 2321 96. www.jltgroup.com.

© July 2009. 260935

Jardine Lloyd Thompson Limited

6 Crutched FriarsLondon EC3N 2PHTel +44 (0)20 7528 4000Fax +44 (0)20 7528 4500

Key advantages of JLT private equity cover:In addition to the common coverage found within most private equity wordings,

JLT wordings offer:

• automatic new fund cover

• outside director liability cover

• separate or combined towers of insurance

• wording flexibility

• comprehensive crime extension if required.

What information is needed for a quotation?A completed application form will be required prior to binding. However, an

indication can often be obtained on receipt of a prospectus and financials.

Please do not hesitate to contact us if you require an application form or have

any questions.

For more information please contact:

Simon Holt BA (Hons)

Associate

Jardine Lloyd Thompson Limited,

6 Crutched Friars, London, EC3N 2PH, UK.

Direct Tel: +44 207 528 4740

Email: Simon_Holt@JLTgroup.com

www.jltgroup.com