If you manage other people’s money, you know how much business is risk management already. What you need is an insurance company that realizes how much experience you have in the field, what your needs are, and how to fold it all into one package. How do you find that insurance company? As it turns out, industry leaders in specialized coverage tend to make themselves well known by providing resources that help reach out to the communities they serve. In the case of hedge fund insurance, sites like https://www.owensgroup.com explain the range of different coverage needs hedge funds typically have, a useful rundown for those starting their own operation for the first time.
Errors, Omissions, and More
So what do you need? E&O and liability coverage is a must-have, and they also need to be tailored to the specifics of your industry. You’ve also got to be prepared in the case of an improper valuation or side-by-side trading event, which can happen even when you have the most careful compliance team. You’ve also got to have coverage that is prepared to take care of you in the event that you accidentally have a trading conflict that you don’t catch before the deal goes through. If you employ others in your operation, you might also need standard general liability and employment insurance coverage options. The only way to know out the door number is to work with a team that fully understands your operation.