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In an environment of heightened regulatory scrutiny, asset management firms need to ensure they are protected against the growing expenses stemming from responding to regulatory investigations and proceedings. These expenses are increasing with each occurrence, and the frequency of regulatory investigations is growing. In addition to this heightened exposure, asset managers also face the traditional risk of clients suffering financial loss.
Ascot’s bespoke asset management policy is market leading and specifically provides coverage for a broad scope of regulatory investigations which differentiates it from that of many competitors.
Ascot Apex is a range of management and professional liability insurance products written by Ascot U.S.
Client type:• Investment Adviser Professional and Management Liability• Investment Fund Professional and Management Liability (including Mutual Fund Service Providers)• Assets Under Management up to $15bn
Financial Institutions:Asset Management
Endorsements available: • Fiduciary Liability • Employment Practices Liability
Capacity: • Up to $5mm in capacity on a primary or excess basis• All policies written on ‘A’ rated paper
Coverage highlights: Claim and Loss• The definition of Claim includes informal investigations coverage• Broad definition of Loss including coverage for excessive taxes and amounts deemed disgorgement that did not inure to the insured’s benefit
Defense and Settlement• Advancement of defense costs to insured persons after 60 days when an insured Entity refuses an indemnification request• 100% allocation to covered Defense Costs for Insured Persons• Settlement authority without Insurer consent up to 100% of retention optional employed lawyers coverage by endorsement
pexscot
trigger late notice denial and accounts for sealed qui tam claims • Attorney-client privilege carveback to the cooperation clause• Insurer cannot cancel other than for non-payment. Unearned premium for Insured cancellation calculated on a pro-rata basis
Entity and Insured Persons • Omnibus language for advisers, funds, investment holding companies, and joint ventures• Automatic coverage for newly created funds and continuous run-off coverage for terminated and divested funds• Broad insured persons coverage including optional employed lawyers coverage by endorsement
Exclusions• “That portion of loss” lead in language to exclusions• Built in severability of exclusions• Defense costs carveback to the contract exclusion• Entity vs. Insured exclusionary language
Coverage Extensions• Coverage for crisis management expenses• Coverage for non-party witness expenses for individual insureds• $1 million “side-A” reinstatement of limits for individual insureds• Reinstatement of limits for amounts recovered through subrogation
Other Features:• Mock audit expense reimbursement offered by endorsement• Affirmative coverage for professional liability related to the breach of the insured’s computer systems with no exclusion for cyber related events• Notice language requires material prejudice to
Kenny Li, CFAHead of Financial Institutions [email protected] 646-978-9693
Ryan BeckerExecutive Vice President [email protected] 470-552-4154
Geoff TwomblyAssistant Vice President [email protected] 646-978-9670
Ascot Group is owned by the Canada Pension Plan Investment Board (CPPIB), the largest pension plan in Canada with over C$400 billion in invested assets and representing the retirement contributions of over 20 million Canadians. CPPIB is rated ‘AAA’ by S&P and Moody’s.
ascotgroup.com
All policies are written on an admitted basis by Ascot Insurance Company. Surplus lines policies are written by Ascot Specialty Insurance Company. A.M. Best have assigned these two entities which comprise Ascot U.S. a Financial Strength Rating of A (Excellent) and a Long-Term Credit Rating of ‘A’ with a Financial Size Category of Class XIV ($1.5 Billion to $2 Billion). The outlook of these Credit Ratings is stable
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