Expert insurance buyer Mactavish has recruited two senior private equity leaders to join its newly established Private Equity Advisory Board as it looks to address the shortfall in insurance provision to the sector.
Steve Darrington, former Partner at Phoenix Equity Partners and Yann Soulliard, former Managing Partner of Lloyds Development Capital, will bring 50 years of experience to help drive Mactavish’s engagement with the multi-billion pound turnover industry.
The board will work to address the gap in insurance provision that leaves many PE companies exposed to claims, both from the activities of their own organisations and the portfolio companies they manage.
In a press statement, Bruce Hepburn, CEO and Founder of Mactavish, said: “Over the past five years working with PE clients has taught us that many firms are totally unaware of the risks embedded in their own organisations and the exposure they have to their portfolio companies. All too often they buy insurance that is not for fit for purpose and will not deliver when called upon.”
PE sector insurance deficiencies that Mactavish has had to rectify include companies delivering on-site IT support not being protected for claims arising from work on third-party systems; fintech firms wrongly advised not to buy professional indemnity or cyber cover despite these being their main risks; sole-source manufacturers uninsured for supply chain interruption; insurance programmes excluding key entities, geographies or services entirely. As backers of often high growth innovators, the PE sector is especially exposed to failings arising from hastily arranged, overly standard insurance.
