SKCG Group has designed a comprehensive program for hedge funds that includes a Start-Up Kit for emerging managers.
The program grows in sophistication as the funds AuM and number of employees increase. It is based on SKCGs detailed analysis of the hedge fund industrys insurance needs, from launch to their becoming multi-billion dollar asset funds.
We created this program to give hedge fund managers a clear understanding of their options every step of the way, says David Parker, president of SKCGs Employee Benefits Division. When hedge fund managers launch their funds, they face abundant responsibilities and requirements. Our Start-Up Kit is designed to take their risk management and insurance concerns off the table so they can concentrate on raising assets and managing their funds.
Some prelaunch concerns among hedge fund managers include purchasing property/casualty and liability insurance, workers compensation, medical coverage, as well other basics such as payroll administration.. According to SKCG, more start-ups are also acquiring Directors and Officers and Errors and Omissions (D&O/E&O) Professional Liability coverage.
Even at the beginning, providing the right coverage requires an experienced eye, Parker says. The challenge is in being able to anticipate problems and respond quickly. If the hedge fund manager wants to sign a lease tomorrow, our analysis team needs to read every page of it today and comment accordingly.
SKCG developed its Start-Up Kit as the number of new hedge fund launches began increasing and industry AuM recently hit $2 trillionthe level reached before the 2008 credit crisis.
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