Who: New York Based RIA & Private Fund with $400,000,000 in assets under management.
Initial Concerns: We were originally contacted by the firm when they were contemplating structuring and creating a new fund in partnership with a portfolio manager that had a specific investment focus. While they already had a blended Management & Professional Liability policy in force, they were contemplating purchasing a new separate policy solely for the new structure at the advice of the their current broker.
What we Did: While it wasn’t to our benefit, we advised that there would be no need to purchase a separate policy. We reviewed the language and determined that the fund would be automatically covered based on the “automatic new fund coverage” provision in the policy. Further, and after a more detailed review, it was our observation that the coverage was prohibitive and priced well above the market. Based on our initial findings and consultative approach, it was our suggestion that we conduct deeper review in order to determine if we could create additional value.
Outcome: We aggressively marketed the account and determined that most insurance companies had not seen or underwritten the risk in many years and some not ever. We provided a detailed proposal comparing our marketing results to the current policy. Our efforts resulted in drastically improved coverage and included really broad language specific to regulatory matters. Additionally we cut the cost over $20k which resulted in considerable savings.
Whether at renewal or when marketing new business, our approach remains the same. Consultative and always with our clients interest in mind.