Family Office Insurance Coverage Explained

Family Office Insurance Coverage Explained

Family office insurance coverage is needed as family office risks are significant. Thankfully there are a few specialized family office insurance coverage products in the marketplace that ALIGNED Insurance brokers can craft to help manage Canadian family office risks. Family office insurance is often a flexible package of coverages that includes specialized terms and conditions that reflect today’s evolving financial and regulatory environment and typically include a number of dedicated family office insurance products.

Family Office Insurance Coverage Products

• Directors & Officers and Trustee Insurance
• Professional Liability/Errors & Omissions Insurance
• Crime/Theft Insurance
• Employment Practices Liability

More About Family Office Insurance Coverage

“Family office directors, officers and executives face complex liability exposures. They are charged with adhering to a high level of fiduciary care in managing their high-net-worth clients’ wealth and assets. Failure to adhere to these fiduciary duties can result in costly litigation,” said Cameron Rose, Senior Vice President, Financial Lines, Chubb in Canada.

Family office insurance needs to recognize the unique needs of family offices and offers liability protection in a customizable and modular insurance package to help protect the firm and its employees from potential liabilities.

Family office insurance products need to address a wide spectrum of family office risks including professional liability, trustee liability and employment practices liability. In addition, to reflect today’s evolving family office risks, family office insurance products should include the following broad terms and conditions:

• The definition of an organization includes any trust, in addition to family office; subsidiary of the family office; private funds, including management entities such as general partners, managing members and advisors; and investment holding companies of any trust or private fund.
• If the policy is renewed, claims can be reported up to 180 days after the policy has expired.
• After a claim has been submitted and all requested information has been received, the insurer should advance defence costs to the insured within 90 days.