Overlooked Benefits of E&O/D&O

While asset managers should always be aware of the protections provided by their E&O/ D&O coverage, there are more reasons than ever to think about it now.

  • The SEC continues to push forward stressing individual accountability by taking action against individuals. In its 2017 fiscal report, the SEC’s Enforcement Division cites individual accountability as one of its core enforcement principles. Since Clayton took the helm as SEC Chairman, we have seen that the SEC continues to name individuals in most cases.
  • Investors will continue to take action against firms when they suspect they can recoup losses.
  • Most insurance companies are now offering a premium credit or reimbursement to firms conducting mock audits so it’s not completely “out-of-pocket”.
  • You can request a free assessment of your current policy to identify gaps where you may need additional coverage AND where you may be able to add the coverage with little to no additional premium.

While compliance is of course our forte, we view insurance as just one necessary control to help mitigate your risks.