RIA

By Steven Barge-Siever, Esq. If I launch a pooled fund, do I need different insurance? Generally, yes. A standard RIA E&O policy should not be assumed to cover a pooled investment fund. RIA E&O insurance is usually designed to cover claims arising from investment advisory services. A pooled investment fund creates additional risks involving the fund entity, general partner or managing member, fund governance, investor disclosures, valuation, expense allocation, liquidity, c

Most RIAs need at least $1M of E&O insurance, but the right limit depends on AUM, client profile, investment strategy, custody, discretion, cyber exposure, defense costs, and custodian requirements.

Does an RIA need D&O insurance? Learn when E&O is not enough and how D&O may protect investment advisers against ownership disputes, regulatory investigations, M&A claims, investor disputes, creditor claims, and private fund management liability.