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.

1. The first step is the completion of an application.   Just hearing the words “complete this application” can send most folks into a tailspin and fortunately our process isn’t like this photo!   But, I get it, I hate filling in forms and I’m sure you do too.  The good news is that we have a smart form you can find HERE.  The advantage of using our smart form is that once your data is input in one form, it’s carried over to other forms we use as well, reducing the redundancy of filling out applications. In addition, if we write your insurance, the use of our smart form technology will ease the renewal process. Instead of completing a renewal app from scratch, most of the information you input now will carry over to the renewal application and only require updates to certain fields.
2. In addition to the application, we’ll need the PPM for the fund(s).
3. For established funds, we will need the latest audited financial statements and the latest interim statement.  For startup funds, we will need a copy of your business plan and proforma financials and links to your principal’s LinkedIn pages.
4. Copies of your LP/LLC agreements, with any amendments.

So there you have it 4 important pieces of information needed to quote your D&O and E&O insurance for a hedge fund!

Once we have all that information in hand, we will have a discussion with you to verify the information and to make sure we understand your firm and your objectives.  Then we can go out to various insurers who write this type of coverage for hedge funds and engage in discussions with underwriters to produce proposals.

Depending on the completeness of the information we can usually return our proposal in about 2 to 3 weeks. If for some reason you’re in a rush, we can accommodate that as well.  The more info you give us, the better job we can do for you in the market.

Once underwriters return their quotes to us we will prepare a proposal that will indicate at a high level the coverages, endorsements, amendments, and major points of the policies to be proposed with the pricing we received from various underwriters. There may be some underwriters/insurers who may not offer a quote and we’ll disclose that as well.

Our object is to craft the most comprehensive coverage for you at the most competitive pricing the market can offer so that you’re not tasked with doing the shopping around and then trying to compare alternate offers. Since we can access most of the underwriters in this market space you are assured of a thorough market canvass.

Want to discuss a particular issue or need you have when it comes to any form of insurance for hedge funds?  Give me a call or drop me an email.  Thanks!