You Have to Make Sure Your Private Equity Firm Has D&O Coverage When Responding to Subpoenas
Private equity companies have recently been hit with a barrage of regulatory subpoenas.
Responding to these subpoenas may cost the private equity firms to expend millions of dollars. These entities should have D&O liability insurance. Initially, the entity must make sure that responding to such a subpoena falls within the definition of a claim. Some policies may not define claim so you may then have to hope that the court reviewing your matter accepts a definition that will encompass a response to the subpoena.
Essentially, be prepared before receiving the subpeona, call your insurance broker (and lawyer) today!