Amid the uncertainty, disruptions and economic struggles wrought by the coronavirus pandemic, now is the ideal time for fund managers to revisit their insurance policies and those of their portfolio companies to potentially mitigate some of the financial losses. Several different coverages may be available to fund managers under their existing policies, although particular diligence will be required to ensure that insurers do not resist paying otherwise valid insurance claims. Those topics and more were examined in a recent Proskauer program moderated by partner Michael R. Hackett and featuring insights from partner John E. Failla. This first article in a two-part series provides a general overview of the insurance market during the coronavirus pandemic, as well as guidance on how to successfully file claims for business interruption losses caused by the virus. The second article
will review insurance coverage fund managers can employ to protect themselves and their portfolio companies from claims, as well as to guard against increased cyber risks. For additional commentary from Proskauer attorneys, see “Ten Risk Areas for Private Funds in 2018
” (May 3, 2018); and “A Roadmap of Potential Landmines for Fund Managers to Avoid When Completing the Revised Form ADV
” (May 25, 2017).