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Fund Liability Coverage (Hedge Fund/FoF, VC and Private Equity Funds)
- Who is insured?
- The Fund
- Directors/Officers
- Board Members
- Partners
- Employees
- Trustees
- What is insured?
- Liability arising from the operation/management of the
fund
- Wrongful acts in connection with the purchase/sale, or
offer to purchase or sell investments for the fund
- Allegations that the insured fund violated local
securities laws
- Liability arising out of any matter asserted against an
insured solely by reason of their status as
directors/officers, board members, partners, employees or
trustees of the fund
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Investment Advisor & Financial Services Professional
Liability Coverage
- Who is insured?
- Fund managers and their qualified affiliated
financial services providers
- Any wholly owned subsidiary
- Directors/officers, partners, members of the board,
employees & trustees
- What is insured?
- Liability arising out of professional services
provided for clients
- Wrongful acts committed by your firm or by those for
whom your firm has legal responsibility while performing
or failing to perform professional services
- Client allegations that your firm's performance was
inadequate and/or deviated from stated strategies
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Directors and Officers Liability Coverage
- Who is Insured?
- Insured Person; any past, present or future Director
or Officer (including certain functionally equivalent
employees), and also employees in general as it relates
to securities claims
- Insured Fund; Named corporation and any subsidiary
- the Investment Manager of each Insured Fund
- the General Partner of each Insured Fund
- What is a claim?
- Any written demand of monetary or non-monetary
relief
- Any civil proceedings commenced by service of a
complaint or similar pleading
- Any arbitration, mediation or other similar dispute
resolution proceeding
- Any criminal proceeding commenced by return of an
indictment
- The receipt by an Insured Person of a target letter or similar document in connection
with a criminal investigation of such Insured Person
- Any administrative or
regulatory proceeding commenced by the filing of a
notice of charges, formal investigative order or similar
document; including any appeal from any such proceeding
- Highlights
- SEC Investigation Costs
- Side A Coverage
- Worldwide D & O
- Severability Clause
- Hammer Clause
- Insured v. Insured Coverage
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Employment Practices Liability Coverage
- Who is insured?
- Entity, managers & qualified affiliated financial services
providers
- Wholly owned subsidiaries
- Directors/officers, partners, board members, trustees &
employees
- What is insured?
- Wrongful dismissal, discharge or termination of employment
- Breach of oral or written contract of employment
- Employment related misrepresentation, harassment (including
sexual), defamation, humiliation or wrongful infliction of
emotional distress
- Wrongful failure to promote employee
- Wrongful discipline
- Negligent supervision
- Invasion of privacy
- Wrongful deprivation of career opportunity
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Fiduciary Liability
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Who is insured?
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Hedge fund/FoF, VC, private equity fund managers
and their qualified affiliated financial services providers
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Wholly owned subsidiaries
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Directors/officers, partners, members of the
board, trustees & employees
- What is insured?
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Negligent acts, errors or omissions in the
administration of any insured plan
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Breach of responsibility, obligation or duties
imposed upon fiduciaries of a sponsored plan by the ERISA act of
1974
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Financial Institutions Bond (Form B)
- Who is insured?
- Hedge fund/FoF, VC, private equity fund managers &
their qualified affiliated financial services providers
- Wholly owned subsidiaries
- Directors/officers, partners, board members,
trustees & employees
- What is insured?
- Dishonest acts of employees/partners
- Property at premises and located worldwide
- Property while in transit
- Forgery/alteration
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Cyber Liability Insurance
- Who is insured?
- Entity and qualified affiliated financial services
providers
- Wholly owned subsidiaries
- What is insured?
Cyber Liability Exposure Facts
- 92% of companies surveyed reported suffering at least
one security breach
- Clean-up/recovery from a breach in system security, on
average is estimated to cost an employer $100/computer per
incident
- The number of security incidents reported nationwide
climbed to over 150,000 in 2004, up from 53,000 in 2001
- The So Big F virus & My Doom virus had a world wide
financial impact of $3 billion
- Intangible assets account for more than 87% of the
value of U.S. businesses, up from 38% in 1982
Sources: (1) Computer Economics, Inc., (2) 2003 CSI/FBI
Computer Crime & Security Survey of 530 U.S. Companies, (3)
Gartner, Inc.
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Property/Casualty Insurance
- Who is insured?
- The Entity and their employees
- What is insured?
- Real property (bldgs.) and contents
- 3rd party liability exposures (premises, BI/PD, etc.)
- Business interruption/extra expense
- Workers compensation
- Miscellaneous Auto – Hired/Non-Owned
- Electronic data processing
- Excess (Umbrella) liability
- Miscellaneous other coverage
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Employee Benefit & Retirement Programs
Providing the right mix of employee benefit and
retirement programs for all classes of employees is critical for
establishing a healthy work environment that will attract and
retain the best employees. Through a variety of programs, products
and services, Jamison offers the solutions everyone will be
searching for.
- Group Benefits
- Life/AD&D
- Medical
- Disability
- Dental/Vision/Long-term care
- Retirement/Perpetuation Products
- Key Man Coverage; Properly funded partnership/buy-sell
agreements to allow the fund to properly unwind it's portfolio
in the event of the loss of a key employee
- Self Directed 401K Plans: Including the ability to
include your fund within your 401k plan
- On-shore Deferred Compensation Programs (Life & Non-Life
Insurance Funded Plans)
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Personal Wealth
Management Services
Through the use of innovative personal risk
management tools and techniques, we design programs to preserve
your personal assets. Our Personal Wealth Management
programs encompass:
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Homeowners coverage
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Automobile coverage
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Personal umbrella/excess liability coverage
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Watercraft coverage
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Individual Kidnap and Ransom coverage
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Individual life products
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Individual Disability products
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Individual Long-term Care products
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Claims Scenarios for Financial Management
Exposures
Financial Management: When Protection Proves Critical…
The following scenarios reflect the types of claims often filed
against alternative investment firms:
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A founder of a technology start-up sued venture
capital firms and associated funds after allegedly being forced
out during the start-up phase of the company. The company
subsequently went public and was later sold for a significant
premium. The founder claimed that the venture capital firms seized
control and diluted ownership by issuing additional stock below
market value, causing him significant financial loss
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A venture capital firm was purportedly formed
with the stated purpose of investing in healthcare companies.
Instead, it allegedly invested mostly in computer companies that
were on the verge of failing. Limited partners sued the fund and
the general partner alleging breach of fiduciary duty, securities
law violations, and common law fraud.
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Shareholders of a portfolio company brought a
class action lawsuit against the portfolio company, its major
shareholder (a venture capital firm) and six directors of the
company. One of the directors was a principal of the venture
capital firm. Plaintiffs alleged that the defendants issued
misleading information regarding the prospects of the portfolio
company, thereby inflating its stock price. The stock price later
declined when the true prospects of the company became apparent.
Cyber Liability: When Protection Proves Critical…
The following
scenarios reflect the types of exposures that exist within
alternative investment firms:
- A financial services company’s computer system fails to
process buy/sell orders, resulting in unfulfilled trade orders
- A virus spreads throughout a financial services company’s
system causing downtime for traders
- Internal/external hacker break into system and
misappropriates funds
- Internal/external hacker break into system and steals client
information
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Risk Management Strategies and Account Stewardship
Developing risk management strategies is a collaborative effort.
The strategies we implement are based upon a combination of our
detailed discussions with your senior management, and review and
analysis of your business operations. On-going communication of
all account activity ensures expectations and goals are managed
collectively. Risk management strategies will involve discussion
of:
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Corporate Strategy
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Market Conditions
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Regulatory Environment
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Culture
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Internal Capabilities
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Benchmarking
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Total Cost of Risk
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Ability to Retain Loss
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Catastrophic Exposures
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Loss Experience
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Savings Objectives
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Global Servicing Needs
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Supporting Your Critical Needs
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Professional Liability Underwriting Requirements
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Size of fund (assets under management)
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Type of investment strategies and due diligence
processes
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Management team (experience, etc.)
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Third party relationships
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Recent pricing
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Claims history
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Track record
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