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 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 ” .