Mutual funds, landscaping, swinging hammers

Mutual Fund Director Coverage

Regulators have been working to ensure that independent directors of mutual funds can exert authority over direction and performance, which in turn has left directors subject to a higher degree of scrutiny by investors and regulators. Fund directors and officers have expressed concern that their insurance programs have not kept pace with these hazardous financial exposures. In response to this quandary, Marsh has launched Mutual Fund Director Coverage, an insurance program that addresses gaps in management liability insurance carried by many mutual funds. With special emphasis on independent directors, it will strengthen the ability to ensure that a fund adheres to its investment strategy and monitors the performance of fund managers. The program offers a broad definition of professional services and insured verses insured coverage, which protects directors against suits brought by fund managers or advisors. In addition, the program provides independent directors with a separate dedicated aggregate limit in the event the primary policy limits are eroded by other claims. For more information, call 212.345.4052 or visit www.marshweb.com.