Insurer and reinsurer Everest Re Group has released a new investment management product, Everest Elevation® Investment Management Insurance Policy (Elevation IMI), which provides management and professional liability coverage to investment advisers, mutual funds and hedge funds.
Charles Higham, Head of Financial Institutions, said the product comes in response to demand for a streamlined product that provides comprehensive coverage and addresses the shifting nature of the litigation and regulatory landscape.
“Elevation IMI has responded with coverage enhancements such as providing additional limits of liability to chief compliance officers to address the influx of targeted enforcement acts brought against them for regulatory compliance violations.
“Elevation IMI is specifically designed to evolve as the risks of our clients evolve and enables us to provide a customized solution to each client,” said Higham.
Everest Re’s new investment management cover recognises the changes in technology, investment products, distribution and a changing regulatory climate that has created new exposures and risks for many in the financial services industry.
Improvements to Elevation IMI cover include: coverage for exposure to automated portfolios and investment technology platforms, reimburses mock audit and/or corrective action expenses, no prior consent required to cost of corrections coverage, pre-claim expenses, and coverage for third-party cyber exposure.
Keith Lavigne, Head of Management and Professional Liability for Everest Specialty Underwriters, said: “Our team of highly skilled underwriters, all of whom have previously worked in the financial services industry, possess a deep understanding of the exposures specific to asset management.
“Our long history in the Financial Institutions market, coupled with the technical acumen of our underwriters, enables Everest to continue providing unique solutions to the marketplace.”
Additional cover provided by the new product includes; non-party witness coverage for Independent Directors, shareholder derivative demand investigation costs coverage, executive protection coverage including asset protection costs, freedom protection costs and PR expenses and additional limits of liability for chief compliance officers and independent directors.