Arch Canopy for Investment Advisers & Investment Companies®

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.

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