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Investment Adviser/Fund E&O and D&O 2016-11-07T09:36:51+00:00

Investment Adviser & Fund E&O and D&O

Asset management firms and their investment funds face an unprecedented array of potential professional and management liability exposures, any of which can result in a devastating lawsuit, regulatory proceeding, or a written demand by a dissatisfied client. Even if a firm or fund does nothing wrong, defense and settlement costs can escalate to millions of dollars and result in immeasurable damage to a firm’s reputation and bottom line.

Specialty liability policies have been created to address the unique needs of asset managers and their investment funds.  Modular in nature, and comprised of five or more separate coverage components, the policies are a cost effective way to structure coverage because the modules all share one aggregate limit of insurance.

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What Makes These Policies Unique

  • The policies are designed to address the full range of asset management industry organizational models, products and services.
  • They can be customized to each firm’s individual business model and insurance needs, and easily adapts to the firm’s organizational changes.
  • Customers may select a combination of coverage parts and elect a different retention or sublimit appropriate to each coverage part.

What Do They Insure

These policies offer coverage features that address many of the most important professional liability and D&O liability exposures faced by asset management firms and investment funds, such as:

  • Allegations by clients for breaches of investment guidelines.
  • Prospectus liability lawsuits against mutual fund directors, advisers, and service providers.
  • Formal regulatory investigations into alleged trading violations.
  • Allegations of failure to disclose risks or conflicts of interest.
  • Fee-based lawsuits.
  • Lawsuits for failure to perform due diligence in the selection and oversight of sub-advisers or outside funds.
  • Alleged performance misrepresentations.
  • Alleged improper valuation of fund assets.
  • Allegations by pension fund clients of ERISA violations.

This flexible insurance solution is also designed to help protect asset management firms from increasingly common employment practices liability and fiduciary liability exposures, including:

  • Employee discrimination.
  • Sexual harassment.
  • Breach of fiduciary duty in managing their employee benefit plans.

Contacts:
Fred Gaston
P: 914-864-1168

Donna Witt
P: 914-864-1161

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