Berkley Professional Liability Launches Primary Investment Management Insurance

PRODUCT: Investment management insurance

COMPANY: Berkley Professional Liability writes on behalf of Berkley Insurance Company (admitted) and Gemini Insurance Company (non-admitted).

BEST RATING: Berkley Insurance Company and Gemini Insurance Company are rated A+ (Superior).

AVAILABILITY: Coverage is available on an open-brokerage basis.

FOCUS: In today’s litigious business environment, “asset managers are facing a heightened risk of claims and litigation as a result of increased volatility in the markets and greater regulatory scrutiny,” says Raymond DeCarlo, vice president, Berkley Professional Liability.

Berkley Professional Liability responds with a new primary management liability policy for investment advisers and the funds they advise. The customizable policy provides a flexible solution to meet the growing needs of financial institutions and “can be a substantial piece of a firm’s management liability insurance program,” DeCarlo explains.

Operating units of W. R. Berkley have been writing directors & officers insurance since 1992, and Berkley Professional Liability was formed as an operating unit of the company in 2008. The new policy “can complement other products, such as our public company D&O form for those asset managers that are publicly traded,” DeCarlo points out.

Berkley is consistently ranked as one of the top writers of D&O insurance by premium volume, DeCarlo adds.

COVERAGE DETAILS: Coverage options include investment adviser professional liability, fund professional and management liability, D&O liability, employment practices liability and fiduciary liability, all of which are available on a combined or standalone basis.

Coverage is structured in a modular format. For example, an insured may choose to structure a joint policy that covers D&O and E&O for both the funds and adviser, or they may choose to cover just the adviser or just the funds.

This flexible policy format allows the client to include their choice of coverages. Policy is non-rescindable and designed for both mutual funds and private funds. 

UNDERWRITING: Minimum requirements include an application; audited fund financials; offering documents; performance data; loss history; and the ADV form filed with the Securities Exchange Commission. Employee handbook is required for EPLI. IRS Form 5500 is required for fiduciary. 


TARGET: The product is appropriate for advisers and funds with assets under management up to $10 billion. 

COVERAGE TERRITORY: The product is currently admitted in 15 states and Washington, D.C., and is expected to be admitted in several other states later this year.

CONTACT: Raymond DeCarlo, vice president; Berkley Professional Liability, 757 Third Avenue, 10th Floor, New York, NY 10017; 212-618-2925.

Jacquelyn Connelly is IA senior editor.