...a
Frenkel & Co., Inc. Company
Question: What coverages do Hedge Funds typically purchase?
Answer: A typical insurance program will include the following policies:
| Coverage | Description |
|---|---|
| Property including Business Income and Extra Expense | "All Risk" coverage for office furniture, improvements and betterments, computer and telecom equipment; loss of profits, expenses that necessarily continue even in the event of a loss, and extra expenses over and above normal operating expenses in the event of a fire or other casualty. Could also include as an option, loss caused by flood and earthquake. |
| Commercial General Liability | Covers third party claims for "bodily injury" (ie: slips and falls), "property damage" (ie: you negligently start a fire that damages other tenants' property), and "personal injury" (ie: libel and slander). Your lease may also require that you cover the landlord as an "additional insured". |
| Business Auto | Covers auto liability and physical damage claims for owned or leased vehicles. Even if you do not own or lease any vehicles you still need Hired & Non-owned Auto Liability coverage in the event there is an accident involving a rental car or an employee's personal car used while on company business. |
| Umbrella Liability | Provides higher limits for third party liability claims. Sold in increments of $1 Million. |
| Workers' Compensation | Statutory coverage providing medical expense and indemnity coverage to employees injured on the job. |
| Errors & Omissions / Directors & Officers Liability | Covers on a "claims-made" basis for wrongful acts of the adviser and general partner/directors/members/officers of the fund(s). Policy pays for defense costs and any judgment or settlement up to the policy limit, subject to the deductible. |
| Employment Practices Liability | Covers on a "claims-made" basis for claims made by employees alleging wrongful termination, sexual harassment, and discrimination. Policy pays for defense costs and any judgment or settlement up to the policy limit, subject to the deductible. |
| Fidelity Bond | Covers loss due to dishonest acts of employees. Can also be extended to cover ERISA plans. May also cover loss of money and securities, depositors forgery, wire transfer fraud and computer fraud. |
| Group Benefits | Coverage for your employees can include medical, dental, vision, legal, life and disability benefits. Our sister company, Frenkel Benefits LLC also provides its exclusive Benefits Concierge and On-Site Wellness programs. |
| Life Insurance | Life insurance is usually purchased to fund buy/sell agreements between partners/members of the adviser entity. |
