Primary Scope of Coverage
- Menu-driven single policy form with coverage parts for D&O, Investment Adviser E&O, Investment Company (Mutual Fund) E&O, and Hedge Fund E&O.
- Broad definition of "claim" includes arbitration, formal administrative, and regulatory proceedings.
- Broad definition of “insured person” includes any director, officer, general partner, managing general partner, managing member or member of the management committee, chief compliance officer, and foreign equivalents of the insured entity.
- Broad definition of “hedge fund professional services” includes investment management services to the hedge fund and creation, distribution, sale of securities in, or management or administration of a hedge fund.
- Nonprofit Double Excess ODL Coverage for “outside entities”
- Narrow pollution exclusion: not applicable to nonindemnifiable loss
- Automatic coverage for newly formed investment companies (mutual funds)
- Narrow insured vs. insured exclusion:
- Does not apply to claims by a bankruptcy or insolvency receiver, trustee, etc., for the entity
- Does not apply to a “derivative claim"
- Does not apply to cross claims for indemnity or wrongful termination
- Does not apply to noncollusive claims by independent directors of an investment company
- Liberal notice provisions:
- Notice of claim as soon as practicable, not later than 30 days after the end of the policy period
- No panel counsel
- No hammer clause
- Advancement of defense costs
- Noncancellable by the insurer except for nonpayment of premium
- Bilateral discovery
Excess Scope of Coverage
- Follows primary policy, but no broader than the most restrictive underlying insurance policy
- No exclusions
- Policy will not drop down due to exhaustion of sublimit, but policy will recognize payment of sublimit
- Follows the underlying policy, designated as 'Followed Policy,' for key terms such as:
- Discovery period
- Notice of claims
- Short policy form - only two pages in length
Senior Vice President
Assistant Vice President
24/7 Claims reporting is available at:
Nationwide's dedicated claims team works proactively to complete a thorough investigation of every claim and aggressively manage the defense of claims to help protect your assets. Our dedicated claims team has the experience and technical expertise in numerous jurisdictions to manage professional liability claims and complex litigation.