New York-based Everest Specialty Underwriters (ESU), a member of Everest Re Group, has introduction its new primary investment management policy.
ESU said that this new product will address the professional liability exposure and the directors and officers (D&O) liability exposure facing a wide array of asset management firms, including investment advisors, wealth management firms, mutual funds, hedge funds, fund of funds, real estate investment trusts, private real estate funds and private equity partnerships.
Designed by ESU’s Financial Institutions Group, a seasoned team of knowledgeable underwriters and claims specialists, this product is the second in a series of new and innovative ESU product introductions.
According to the ESU, the investment management professional and management liability policy includes a broad definition of investment services including a comprehensive definition of claims. Coverages include: investment advisor professional liability; fund professional services and management liability and investment advisor management liability.
In addition, other coverages may be added by endorsement or on a separate policy such as employment practices liability; fiduciary liability; distributor coverage; cost of corrections coverage and financial institutions bonds
ESU vice president Kevin Koehler said the investment management liability product was designed with input and feedback from prospective clients, insurance brokers and the legal community.
"It offers flexibility and coverage options to tackle a wide range of liability exposures such as lawsuits arising from failure to disclose risks or conflicts of interest, failure to perform due diligence and regulatory proceedings," said Koehler.