How Hedge Funds Can Reduce D&O Costs

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

Hedge Fund Business Insurance

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 Insurance for Hedge Funds

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: What is a Hammer Clause?

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

Hedge Fund D&O and E&O Insurance Do You Need It?

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

Hedge Funds – What is D&O Insurance?

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

Hedge Funds – What is E&O Insurance?

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

What is Cost of Corrections Coverage?

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

Insurance for Startup Hedge Funds

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 policies … Read More

Hedge Fund D&O / E&O Insurance

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

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