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Preferred Concepts LLC
Contact Us
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Preferred Concepts LLC
Contact Us
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Private Equity and Hedge Funds
Mercator Risk Services provides coverage for a wide range of investment professionals including private equity and hedge fund managers. There are a large number of professional managers of private equity funds and hedge funds that currently need expert insurance advice and professional liability insurance. Mercator Risk Services is an expert in professional liability insurance for investment related organizations.
 
Are private fund managers faced with professional liability exposure and claims? Yes, but the exposure is not well understood and the number and types of claims are not well publicized. The primary exposure is driven by unmet investor expectations, which cause disputes and litigation. Causes can include poor performance, deviation from investment guidelines, and administrative errors. In addition, misrepresentation and failure to disclose are areas getting increasing attention. Defense costs and management time during litigation are significant additional costs to any claims and resulting litigation. For investment professionals, defense costs are a significant part of total loss costs.
 
Fund managers are exposed to frivolous claims as well as legitimate claims when an error occurs. Frivolous claims are always structured in the most advantageous manner to the plaintiff, and are not always totally accurate. One method used by plaintiff attorneys is to describe the activity that led to the losses as far riskier and for amounts far greater than originally represented, something that is a challenge to refute.
 
The frequency and severity of claims vary by the type of investment strategy, operating characteristics and investor profile. Often disputes result in a plaintiff seeking compensation from all parties involved whether the party is responsible or not. The resulting dispute can cause:
  • Costly Litigation
  • Management Diversion
  • Damage to Reputation
While investors are the primary source of claims, claims can arise from other sources as well, including creditors, competitors, regulators and companies in which the funds invest. Mercator Risk Services provides coverage for a wide range of investment professionals including private equity and hedge fund managers. Please let us know your needs and we will provide you with information and assistance with your particular situation or account, and professional liability coverage
 
Mercator Risk Services can usually utilize an application you have to get started (other than a renewal application), or they can provide a specialized application for your client.
 
Hard to Place: They also handle hard to place, distressed and unusual accounts, such as accounts with claims or financially impaired accounts. Let them know about your clients’ needs and they’ll provide you with information and assistance with your particular situation or account and Errors & Omissions Liability coverage.
 
For more information, please call (860) 527-9717 or send an e-mail to [email protected]. You can get additional information on their products, insurance applications, and Specialty Lines insurance information on their Web site www.mercatorpro.com.

U.S. States Available

  • U.S. States Available:
  • Provider Type:
    Wholesale Broker
  • Admitted:
    0
  • Carriers:
  • Carrier Ratings:
    A.M. Best A rated
  • Commission:
    Varies
  • Min Premium:
    -

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CONTACT INFORMATION

LOCATION

There are no locations attached to this storefront.

APPLICATIONS

  • Applications
    Please complete the appropriate application and fax to Robert Sargent at 860-527-2438.

AGENCY LICENSING

Mercator Risk Services utilizes a short brokerage agreement, which is typically completed at the time of binding your first account.
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