Arch Canopy for Investment Advisers & Investment Companies®

Overview

This product is available to advisers and funds of all sizes. It is particularly attractive to those firms without a dedicated insurance risk management professional in-house or that may be looking to buy coverage for the first time as a result of the changing regulatory environment or an evolving investor base. The product is designed for any firm that desires a comprehensive, yet flexible, suite of management and professional liability coverage, written on a single policy form, from a stable insurance company with a highly experienced claims team. This product takes the guess work out of where to turn in the event of a claim or loss.

Capacity

Up to $25 million in limits on a primary or excess basis.

Financial Strength

  • A.M. Best: A+ XV.
  • S&P: A+.
  • Fitch: A+.
  • Moody’s: A2.

Distribution

Select retail and wholesale producers.

Corporate Contact

Micah Ponto

Senior Vice President, Head of Financial Services

Direct: +1 312 601 8408

Mobile: +1 312 339 5699

[email protected]

Michael Landers

Senior Vice President, Financial Services

+ 1 646 563 6378

[email protected]

Megan Hirschey

Senior Vice President, Financial Services

+1 312 601 8439

[email protected]

Proud to be recognized as a 2021 5-Star Professional Liability
and D&O by Insurance Business America.

Justin Psaki, EVP Executive Assurance Division and Professional Liability Division, and Marilyn Marshall, EVP Professional Liability, describe Arch’s response to the hard market in D&O, Cyber and Professional Liability and share more about their strategy for 2022.

Our Brand Promise

Pursuing Better Together encapsulates how we do business at Arch Insurance. It is an approach that is based on collaboration, responsiveness and a genuine commitment to continually raising the bar.

It is our promise to our brokers, colleagues and other partners to:

  • Listen, share insights and work together to deliver informed solutions.
  • Build trusting, respectful and responsive relationships.
  • Understand your goals and explore possibilities together.

Key Features

  • Policy is fully non rescindable.
  • Defense costs are advanced on a current basis.
  • Definition of loss within the liability coverage parts includes defense. costs coverage for most excluded categories of loss.

Public or Private D&O Highlights

  • Derivative Demand Investigation Coverage (50% Coinsurance up to $1 million sublimit).
  • Loss includes SOX 304(a)/Dodd-Frank 954 Costs and civil penalties pursuant to Section 2 (g)2(B) of the  FCPA.
  • Conduct Exclusions have final, non-appealable adjudication standard and preclude any proceeding initiated by the Insurer.

Investment Adviser Professional Liability Highlights

  • Adviser services includes selection and oversight of investment advisers and outside service providers.
  • Also includes formation of an investment company or separately managed account and publication of written material.
  • Coverage extends to wrongful acts of outside service providers for which the insured is legally responsible.
  • Independent contractor coverage.
  • Bodily injury/property damage exclusion includes carve-back for damage to or destruction of client records and emotional distress arising from adviser services.
  • Defamation/disparagement exclusion includes carve-back for claims by clients arising from rendering or failing to render adviser services.
  • Cost of corrections coverage – upon request.

Investment Company Liability Highlights

  • Coverage for any wrongful act, not just limited to professional services.
  • Nonparty witness coverage.
  • Cost of corrections coverage – upon request.

Fiduciary Liability Highlights

  • Sublimit of $100k for Voluntary Settlement and Defense Costs.
  • Coverage for civil penalties imposed under Section 502(i) or (l) of ERISA.
  • Sublimit of $25k for HIPAA violations of privacy.
  • Full defense costs carve-out to failure to fund/ benefits owed exclusion.

Employment Practices Liability Highlights

  • State of the art “EEOC Charge and Written Demand Continuity Protection” (continuity for previously unknown charges and demands not noticed under the prior EPL policy).
  • Coverage for wrongful acts using internet & social media.
  • Option for 3rd party liability.
  • Claim includes administrative or regulatory investigations.
  • Retaliation carve-out to both the ERISA and the wage and hour exclusion.
  • Defense costs carve-out to the breach of contract exclusion.

Discovery Crime Bond Highlights

  • No “Manifest Intent” language.
  • Unauthorized trading exclusion does not apply to the Insuring Agreements for Forgery & Alteration. and Securities Document Fraud.
  • Increase clarity of coverage (includes all of the essential Form 14 terms & conditions).

Kidnap, Ransom & Extortion Highlights

  • Insured Persons include spouse, domestic partner, sibling, lineal descendants, customer or guest, or normal resident in the home.
  • Loss includes ransom/extortion payments, money or property intended as ransom payment, or response costs.

Submission Guidelines

  • The Arch Canopy for Investment Advisers & Investment Companies® application.
  • Latest ADV II Report.
  • Copies of any brochures, marketing materials/presentations, fact sheets, or investor letters.
  • Latest fund prospectus, private placement memorandum, offering document.
  • Most recent audited fund financial statements for funds including a schedule of investments and adviser.
  • Information indicating performance for the past five (5) years.

Speak with a Regional Expert

Northeast Contact

Sean O’Connor

Assistant Vice President, Financial Services

+1 646 563 6436

[email protected]

Central Contact

Jake Holcombe

Vice President, Executive Assurance & Private Equity Industry Practice Lead

+1 914 369 1654

[email protected]

Southeast Contact

Vincent Piacentino

Underwriting Manager, Financial Services

+1 646 563 5606

[email protected]

West Contact

Joseph DeCree

Assistant Vice President, Financial Services

+1 646 563 6354

[email protected]

Document Library

Arch Canopy Policy for Investment Advisors & Investment Cos Application

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