Financial E&O/D&O

There is no industry more impacted by constantly changing regulations and the ever evolving legal landscape that surrounds it more than the financial sector. Compliance is a constant challenge. And in few industries are the consequences for non-compliance, breaches, errors, and improper suitability more severe - litigation alone for resulting client damages can be extremely costly, lengthy, and brand damaging. Recent trends increasing the demand for financial E&O/D&O packages includes:

  • More investors are requiring it
  • SEC is targeting smaller advisors & PE/VC firms
  • SEC is increasing it's cyber-security oversight
  • DOL (Department of Labor) is imposing new fiduciary standards
  • Funds are expanding to include board representation and outside directorship seat

Partnering with an experienced professional liability broker to create a properly aligned E&O/D&O portfolio through a strong insurer is the first step to financial risk mitigation. Through an individualised approach, we carefully evaluate our clients' organizational struture, its unique needs and goals and structure insurance programs that provide the best solution. Thorough program audits are especially important when placing financial E&O, as coverage can often range from basic policies with multiple carve outs (which provide little value) to broad indemnification which provide a great level of protection including key endorsements such as cost of corrections coverage. There are also many details hidden in the terminology and verbiage which require careful negotiation. These seemingly small verbiage changes can have significant coverage implications and mean the difference between a covered and un-covered claim. While many of these negotiations can carry little to no additional premium, if you don’t ask you won’t receive, which is why it is important to partner with an experienced broker. As an independent brokerage with an emphasized focus on professional and manamgent liability, we leverage our experience to assist investment advisors/managers, venture capital firms, financial consultants and community banks through:

  • Market saturation to achieve compeitive pricing
  • Coverage audits and analysis to assis with proper comparisons and coordination
  • Negotiation of coverage terms, cluases and verbiage
  • Claims Include
    • Trading and Processing Errors
    • Market Timing & timing errors
    • Negligence
    • Breach of duties
    • Mis-management 
    • Misrepresentations made in PPM's & undisclosed investment strategies
    • Failure to disclose/advise/invest
    • Allegations of Fraud
    • Conflicts of interest
    • Fee Disputes
    • Delinquent filing
    • insider trading
  • Claimants Include
    • Investors
    • Employees
    • Competitors
    • Partners
    • Portfolio companies
    • Regulators
    • Bankruptcy Trustees
  • Coverages & Endorsements
    • Side C (Entity) coverage
    • Cost Of Corrections Coverage
    • Coverage for invesigations
    • Broad definition of "professional services" and "portfolio company"
    • Broad definition of "claim" and "wrongful act"
    • Softened hammer clause
    • Foreign Service Of Suit Clause requiring coverage issues be adjudicated abroad (to be avoided)
    • ODL (outside directorship liability)
    • Priorty of payments clause in favor of individual directors/officers
    • Broad bankruptcy carve-backs
    • EPLI (employment practice liability)
    • Crime/Fidelity coverage

Get (Risk) Managed.

Ready to review your existing insurance program? Interested in setting a reminder for a renewal review? Or simply have a question? We're here to help. We also understand you're busy - let's schedule a time to speak that works best for you. Simply schedule a call and we'll reach out when it's convenient.

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