Finalternatives: Call it another form of hedging: the vast majority of hedge fund managers (82%) carry professional indemnity insurance, according to a new survey from Baronsmead.
That total is up significantly from 2010, when it stood at 64%.
The London-based risk consultancy says 93% of hedge fund directors are covered by directors’ and officers’ liability insurance (up from 86% in 2010).
Baronsmead said one of the main drivers behind this trend is the EU directive on Alternative Investment Fund Managers but that most managers already purchase more than the minimum recommended limit of 1% of AUM. Managers also stated that PI was now a requirement demanded by more and more investors.
