Hedge and Mutual Funds

Investment Advisors, Hedge and Mutual Funds and Family Offices need management liability insurance coverage to protect themselves from indemnity and financial insolvency, as a backstop for non-indemnifiable claims, and to protect fund performance. Simon So Insurance will work with you to determine the right coverage for your firm and fund(s). Topics such as professional services performed, regulatory exclusion, fraud, loss and claims will be discussed with you to analyze your potential exposures and draft a policy that addresses your firm’s and fund (s’) unique risk profile. While each situation and company is different, investment advisors, hedge and mutual funds and family offices should generally consider carrying the following coverages:

Management Liability and Professional Liability Coverage

Management Liability and Professional Liability provides coverage for investment advisers including hedge fund, mutual fund and family office managers and their funds for suits alleging wrongful acts committed in their capacity as directors, officers, managing members or general partners of a firm or fund. Coverage can include outside directorship liability coverage on all scheduled public companies and private companies. The definition of professional services includes, but not limited to, investment advice and the management and operation of the funds, asset allocation; the selection and oversight of outside service providers; marketing and solicitation of private funds; the formation, capitalization, and disposition of portfolio companies, including acts in the capacity of controlling shareholder and the review, analysis and selection of other funds. Coverage can also be expanded to include coverage for Employment Practices Liability, Private Company Directors & Officers Liability Insurance, and Outside Directorship Liability coverage. Family Office Professional Liability insurance coverage can be extended to include, but not limited to, estate planning, tax services, bill payment and similar activities and single-or multi-family offices.

Employment Practices Liability Insurance

Employment Practices Liability Insurance coverage for employment practice allegations made against the insured organization and insured persons. The policy includes, but is not limited to, coverage for claims of discrimination, sexual harassment, hostile work environment, wrongful termination and other employment-related issues.

Blanket Bond

The Blanket Bond, also called the Financial Institution Bond, protects Investment Advisors, Hedge and Mutual Funds and Family Offices against loss from dishonest acts of employees, burglary, robbery or theft (both on the premises and in transit), forgery, counterfeiting, misplacement, check kiting, electronic funds transfer as well as a number of perils particular to the financial sector. Some carriers extend coverage to include kidnap/ransom coverage. If Kidnap/Ransom extortion coverage is not part of the bond, it can be purchased separately.