- Automotive Insurance
- Computer
- Crime
- Directors & Offices Liability (D&O)
- Employment Practices Liability
- Health Insurance
- Insurance for Hedge Fund Managers and General Partners
- Liability, including products
- Life Insurance (group and "Key Man")
- M&A (Mergers and Acquisitions) or Transaction Insurance
- Ocean Cargo
- Professional Errors & Omissions (E&O)
- Property
- Real Estate
- Transit
- Umbrella Liability
- Venture Capital and Private Equity Insurance for Management Liability
- Workers' Compensation
Insurance for Hedge Fund Managers and General Partners
Especially today, hedge fund managers and general partners face significant personal and professional risks. Hedge fund investors demand that mangers and general partners exercise adequate due diligence and professional care, follow a set of internal controls and act in a prudent and consistent fashion. That's in addition to expecting superior investment returns.
We are aware of numerous cases where a hedge fund was running their business but ignored its system of internal controls. For example, employees join and leave the firm. Sometimes the compliance manuals are incomplete or out of date. New employees aren't always aware of the firm's policies and procedures. Sometimes, a trade goes through that isn't approved, exceeds established risk and portfolio concentration limits and parameters, or is outside the fund's eligible investments. Even absent any bad faith or intent, these seemingly innocuous events can lead to significant liabilities for the fund's managers and general partners.
Typical exposures include personal trading violations, insider trading, improper valuation of investments, inadequate disclosure and failure to follow controls.
What's more, hedge funds are entering into new areas such as lending, distressed debt, distressed assets and special situations. Coupled with potential Government regulation, this means hedge fund managers and general partners face greater risks and exposures than ever before. This makes insurance for hedge fund managers and general partners more important.
In addition, actions and inactions of a hedge fund's third party (independent) service providers can result in liability for the hedge fund managers and general partners. For example, when a hedge fund administrator improperly calculates NAV (net asset value) and investors subscribe or redeem money/units, the fund bears responsibility.
Numerous parties can initiate claims including: investors and their legal advisors and fund employees. Defendants often include: general partners, managing members, directors and officers and investment managers.
A. Logan has extensive experience with hedge funds and has developed several creative ways to help you secure insurance coverage that combines directors and officers liability, professional indemnity, employment liability and fidelity insurance into a single product.
Contact A. Logan to help you analyze your risk and exposure and secure insurance protection.