With the risks that come along with hedge funds, a dire need has been seen for insurance coverage in the sector. The main reasons why coverage is required include the fact that this provides a greater degree of security to investors and service providers. As a result a number of insurance companies are now offering policies.
Hedge funds can buy different coverage based on their need and requirements. These could include coverage to protect the decision makes of the funds. This is known as Directors and Officers or General Partnership Insurance. In order to protect hedge fund managers, Professional Liability or Errors and Omissions Insurance coverage can be considered. For those funds that are dealing with pension funds, Fiduciary and Trustee Insurance coverage can be purchased. To protect the fund from the risk of being sued by employees, Employment Practices Insurance can be purchased. There are a number of other insurance policies that are available as well.
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