Private equity firms are not exercising adequate due diligence over insurance coverage at portfolio companies , including directors and officers insurance , reviewing them only when they are needed , per research conducted by Mactavish . In a survey , it found just one fifth of senior private equity professionals took an active role in D&O cover , while 40 % allowed portfolio companies to determine cover specification . In addition , fewer than 33 % of firms said their overall due diligence when reviewing the insurance coverage of potential acquisitions was “ very robust ” .
Private equity firms are not exercising adequate due diligence over insurance policies at portfolio companies, including directors and officers insurance, reviewing them only when they are needed, warned research commissioned by Mactavish. In a survey, it found just one fifth of senior private equity professionals took an active role in D&O cover, while 40% allowed portfolio companies to determine cover specification. In addition, fewer than 33% of firms said their overall due diligence when reviewing the insurance coverage of potential acquisitions was “very robust”.