Whether starting up a new fund or in operations for years, insurance plays a vital role in the overall management of your fund.  We believe that insurance is the cornerstone of a proper risk management program.  However, unlike other brokers that start and end with insurance, we choose to start with a holistic look at your entity.

The insurance available to your firm is numerous and the permutations of coverage, limits and premiums is vast.  We believe that your individual fund dynamics should dictate the insurance program and this is only foundation that an efficient portfolio of insurance can be built on.

Initial Assessment

The guiding principle we use with any client is that an analytic approach to their insurance and risk management program will reveal the proper path.  Therefore, our first step is gain an understanding of your firm, its operations and its needs.  We will provide our feedback after this initial assessment and discuss a plan to install the proper insurance you need.

Risk Management Resources

At Calculated Risk Advisors, our mindset is not to simply sell insurance – it is to act as a partner to our clients.  Our approach enables us to act as an extension of your current risk management department, providing outside advice, risk management insights and updates on common claim scenarios or industry trends.

Insurance Placement

There are numerous types of insurance your investment fund will need.  As an independent insurance brokerage, we can offer confidential advice that is not shared to other clients or brokers, strategies for insurance placement and development, and assurance that our interests are aligned with you rather than an insurance company.  Below is a partial list of insurance available from CoverFunds.com.


Errors and omissions insurance (E&O) protects the firm against allegations of errors while rendering a professional service.  Directors and officers (D&O) insurance protects the officers against allegations of mismanagement or breach of fiduciary duty.  However, at an investment fund, the people rendering the professional service are also the officers making the decisions for the fund – the management of the fund and the investment of the fund cannot be separated.  This is why insurers of hedge funds, private equity firms, venture capital firms and other investment funds combine these two insurance policies into a single form.

The E&O/D&O policy combines investment manager E&O with investment manager D&O, protecting the fund from claims by investors, regulators and other third-parties who may have a stake in the firm.  Limits range from $1M up to $10M and higher.  Deductibles tend to be higher than average starting near $100K and increasing depending on AUM.


Employment Practices Liability (EPL) protects the firm against allegations of wrongful employment practice.  This includes allegations of harassment, discrimination, failure to promote and failure to comply with employment law.  This coverage is often combined with the D&O/E&O form but can also be purchased separately if lower deductible or dedicated limits are required.


Fiduciary liability insurance provides defense and indemnity for actual or alleged errors while sponsoring and administering employment benefit plans.  ERISA outlines strict liability for any fiduciary of a benefit plan and also broadly defines who a fiduciary is.  Even if the fund is not administering an employee benefit plan, there may still be liability for choosing the third party vendors who do.


Providing protection from theft of funds, fidelity insurance is often a necessary part of an entity’s insurance program.  The most common coverage part provides reimbursement of monies lost by theft by an employee of the fund.  An additional 5-8 coverage parts comprise this policy and protects against counterfeit money, loss in transit and forgery.

Business Owners Package Policy

In addition to the specialty insurance noted above, fund should also carry a business owner’s package policy.  This includes general liability, property damage, advertising liability, limited auto liability as well as ancillary coverage often require by landlords.

Additional Policies

Depending on the make-up of the fund, insurance policies such as workers compensation, kidnap and ransom, “key man” life insurance or umbrella will be necessary.

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