St. Paul Travelers introduced a new insurance product for investment advisors Thursday. Aimed at protecting the business risks of mutual funds, hedge funds and other investment advisors, it covers various types of exposure, such as failure to adhere to investment guidelines or failure to disclose risks.
Called Travlers SelectOne for Investment Advisers and Funds, the policy also offers coverage for a pension fund accused of mismanaging investments or breaching their fiduciary duty.
"Investment advisors, mutual funds and hedge funds have come under increased regulatory scrutiny over the last few years, and, as a result, these groups are recognizing that they require overage to address the wide variety of risks they face," said Phil Baker, vice
president of financial and professional services at Travelers.
"Our policy is flexible so customers can choose the coverages they need and combine them all under one policy with separate liability limits for each coverage.