Fund Administration

Insurance for Fund Administration

Management liability insurance products for fund vehicles and investment managers, is one of our core areas of expertise. Our specialist products, which have been aggressively developed over the years, cover negligence, Directors’ and Officers’, regulatory, crime and employment liability issues on and off shore.

We are one of the few insurance brokers who have developed in-house insurance contracts designed specifically to respond to the liability issues faced by the managers and directors of funds. The structures employed in utilising the fund’s assets can be complex, as too are the claims the group and individuals can face, specialist insurance is therefore essential.

Designed to be the broadest cover possible, the cover includes:

  • Errors and omissions cover
  • Cover for loss of documents including costs and expenses in replacing or restoring such documents
  • Cover for forged securities and fraudulent instructions by employees
  • Expenses are covered for official investigations (FCA), Ombudsman and other legal fees Cover of mitigation costs – primarily for trade errors AIFMD compliant policy by a legally approved endorsement
  • The policy provides for full advancement of cost and expenses:
  • Incurred in investigating and defending claims
  • Associated with an investigation, examination or other proceedings ordered or commissioned by any official body or institution
  • Incurred in defending criminal proceedings up to a final adjudication of guilt
  • Incurred in challenging and resisting extradition proceedings

The policy also covers an extension to provide an additional limit of indemnity to each director and officer in the event of total exhaustion of the policy.

In the event of a director leaving the Board and the ‘new’ Board of Directors deciding not to renew the cover, the director who was not party to that decision will be covered for an additional 72 month ‘run-off’ cover.