The FTX debacle. Does any form of insurance cover the potential onslaught of lawsuits likely to be filed in the coming weeks from the FTX meltdown? Good question. In this video and post, I’ll take a look at some of the issues at hand with FTX and Alameda Research and the meltdown that occurred this … Read More
Hedge Funds, Private Investment Funds, Investment Advisors, and similar financial service industry firms may have heard of trade error insurance, also called cost of corrections insurance. In this video and post, I’m going to explain what it is, why it’s needed, and how to get it, coming right up. So Trade Error or Cost of … Read More
If you’re a crypto-based investment fund or hedge fund and you’ve been shopping for D&O Insurance you’ve probably been hit with sticker shock. Why do D&O and E&O Insurance for Crypto Funds cost so much? What’s driving the price for insurance on Crypto and Defi? And most importantly what can you do about it and … Read More
Do Startup Hedge Funds Need Cyber Insurance? You’re about to launch a fund or thinking about launching a hedge fund and are thinking about insurance. D&O / E&O are must-haves, of course. They protect the GPs from claims which may arise alleging certain wrongful acts in managing the fund. And many of your investors will … Read More
Specifically their hedge fund D&O Insurance premiums? In a challenging market, like we’re in, many hedge fund clients have been taking higher retentions to shave off some costs on their D&O/E&O premiums. Over the past two years, we have seen some dramatic price increases for hedge fund insurance, specifically the D&O/E&O policy. These price increases … Read More
For a startup Hedge Fund, you may not need workers’ compensation insurance if the only “workers’ are owners, partners, or officers. In New York the rules for partnerships, LLCs, and corporations allow executive owners of a fund to be excluded or to opt-out of workers compensation, Other states can vary from this, but generally speaking it’s … Read More
Does a Hedge Fund need a BOP (Business Owner’s) policy? In my opinion, yes, totally they do. What if the firm is totally virtual? There are no office premises, no office furniture, and contents and everyone works from home on their own laptops? Again, I’d answer yes, and here’s why. The D&O and E&O coverage … Read More
KR&E is an abbreviation for Kidnap, Ransom, and Extortion insurance. It is a must-have for any firm that has company executives traveling anywhere in the world, and not just for hot spots as defined by the State Department. In fact, KR&E is an inexpensive and critical coverage part even when hedge fund managers don’t travel overseas! … Read More
Hedge funds, like other financial service firms, have serious exposure to potential theft of money and securities perpetrated by employees, criminals outside the organization, and digital hackers, intent on getting their hands on your assets. The huge sums of money invested in your fund(s) can be an attractive target for scammers and dishonest employees. But … Read More
You may have heard of a clause in an insurance policy known as a hammer clause. It’s found in management and professional liability policies such as D&O, E&O / Professional Liability, Employment Practices Liability, Cyber, and similar coverages. The intent of the hammer clause is to give the insurance company the power to compel the … Read More
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