Hedge funds and private
investment funds may be the investment vehicles of choice
for many discriminating investors, but with a reputation for
volatility, they also can become easy scapegoats during global
economic downturns. Sophisticated investors' expectations
of superior performance, coupled with their insistence on
scrupulous adherence to applicable standards of care, good
faith, and fiduciary duty, create a wide array of liability
exposures for the funds, their general partners, and affiliated
service providers. The reluctance of most insurers to offer
coverage for hedge funds and other private investment funds
leaves financial services professionals exposed to potentially
enormous risks.
Our financial services industry
experience allows us to offer insurance protection for hedge
funds and private investment funds with a comprehensive
portfolio of tailored coverages. Our unique ability to customize
protection to meet specialized needs, provide superior service,
and offer exceptional claims handling allows us to stand
in the forefront of the insurance industry.
Coverages Include:
Entity Coverage for Funds
- Covers hedge funds and private investment
funds for claims arising from the operation and management
of the funds. Such claims may be brought by limited partners,
creditors, competitors, regulatory agencies, and companies
in which the funds invest.
- Omnibus fund coverage (coverage with no prior reporting
requirement for any fund that is created or sponsored by
any named insured during the policy period) is provided
automatically.
General Partners Liability Coverage
- Protects the general partner and fund
manager(s), in their professional or fiduciary capacities,
for claims brought by limited partners, creditors, competitors,
regulatory agencies, and companies in which the funds invest.
Directors and Officers Liability Coverage
- Protects all directors, officers, trustees,
and members of the fund's Board of Management for claims
arising out of the performance of their duties.
Professional Liability Coverage
- Broadest professional service insuring
clause available for the funds. This includes coverage for
the fund's general partner, directors, officers, trustees,
members of the Board of Management, and employees. The policy
also includes vicarious liability coverage for actual or
alleged wrongful acts of outside contracted service providers.
- Protects affiliated service providers
and their directors, officers, trustees, members of the
Board of Management, and employees for claims arising from
professional services rendered on behalf of the fund.
InsureHedge Is “The Source”
for specialized hedge fund insurance.
We are experienced in providing a complete range of hedge
fund insurance products including, but not limited to: the
design and implementation of employee benefit plans, directors
and officers liability, complete management liability policies,
all forms of bonds, executive protection and meeting the personal
insurance needs of corporate executives. |
