Mutual funds

Tailored industry coverage

 

What are mutual funds?

Mutual funds are extremely popular investments for individuals, qualified plans, and institutional investors. Those who manage the funds are subject to strict financial controls. Fund companies must protect themselves against claims of liability by investors and others. Even if no mistakes are made, a lawsuit can be costly to defend.  

Capacity

$5M maximum limit.

Coverage & Benefits

Primary coverage includes:

  • Blended D&O/E&O coverage for mutual fund board members and executives.
  • Built-in coverage for pre-claim inquiries of insured persons, such as costs to respond to an informal investigation or inquiry of the insured’s business activities.
  • Crisis management expenses such as engagement of a public relation firm and expenses related to notifying customers of a crisis.
  • Extradition costs coverage should an insured person be extradited in order to face charges in another locale.
  • Additional limits apply for independent directors.
FAQs
  • Does your policy respond to an informal regulatory investigation?

    While informal investigations do not traditionally meet the definition of claim, our policy can provide defense coverage for insured persons to respond to informal regulatory investigations.
     

  • How does the policy respond when a legacy fund is wound down?

    So long as the policy is continuously maintained with us, coverage is for claims arising from wrongful acts while the fund was active.
     

  • Would trade errors be covered under this policy and if not, could they? 

    Trade error coverage can be added to the policy.

Related products

Package Mutual funds coverage with the following products: Cyber and Management Liability.

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Claims scenarios 

Not sure what risks our product covers? We’ve brought some scenarios to life.

Mutual funds

Investors in a mutual fund that had significant losses in a bull market claimed that the losses were caused by the board’s failure to supervise the fund’s management company. The investors sued the board for the losses they suffered.

Mutual funds

Investors in a mutual fund that had significant losses in a bull market claimed that the losses were caused by the board’s failure to supervise the fund’s management company. The investors sued the board for the losses they suffered.