Hedge Fund D&O and E&O Insurance. Do you really need it? I’m often asked by hedge fund managers about the need for D&O and E&O Insurance? I’m just a startup, what’s the risk? I’m a very low-risk fund, who’s going to sue me? I get it. Fund managers are risk-takers. It’s what makes you successful. … Read More
This may sound surprising, but the answer to the question of whether hedge funds should shop out their insurance programs is no. At least not in the traditional sense of giving your policies and loss runs to 2 or 3 brokers and comparing the prices that come back. Why is my answer no or that … Read More
What’s needed to quote D&O and E&O insurance for a hedge fund? For startup hedge funds, we’re trying to make the proposal process easier. In this post, we answer the above question on what’s needed to get a quote. The first step is the completion of an application. Just hearing the words “complete this application” … Read More
D&O stands for Directors and Officers Liability Insurance. We like to call D&O insurance, decision making insurance and personal net worth insurance. Here’s why – most D&O claims for privately held firms stem from allegations that decisions made by the firm’s directors, officers, managers, members, GPs, and employees have caused an adverse financial consequence to … Read More
Add Content Block E&O stands for Errors & Omissions insurance….. which is also known as Professional Liability. Hedge funds commonly purchase E&O protection as part of a combined D&O / E&O policy. Because a hedge fund’s exposure to loss can be very similar between the two policy types, it’s advantageous to purchase this as a … Read More
Cost of Corrections or COC Coverage reimburses a hedge fund manager for the cost to correct a situation (such as an error in trading for example) that if left uncorrected would result in monetary damages to a client or shareholders of the fund; and if left uncorrected would likely also result in claim to the … Read More
Insert Image You’re Starting Up a Hedge Fund, What Insurance Coverages Do You Really Need? Before you open the doors to your new venture, there’s a couple of basic insurance coverages you’ll need to get started, which we’ll itemize below: You’ll need a business owners policy, or office package. Sometimes these policies are called BOP … Read More
Why purchase a Hedge Fund D&O / E&O Insurance? As mentioned in other FAQ blog posts on Hedge Funds, Directors and Officers Liability policies and Errors and Omissions policies are very similar in their insuring agreements, structures and exclusions. While the policy forms are similar, they are different. (Yes, the insurance business can seem like … Read More
Why Cyber Insurance for Hedge Funds is a Good Idea. Cyber insurance and cyber related losses are constantly in the news, but few hedge fund managers really understand what this form of insurance is really all about and why purchasing it is a good idea. In this article we explore the coverage features of cyber … Read More
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