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!