Chubb has launched a new suite of insurance coverages that responds to the unique professional and management liability exposures faced by U.S. family offices.
Named Family Office Amplifier, the flexible package of coverages includes many new specialized terms and conditions.
"There are significant liability exposures associated with managing and working for a family office," said Steven Goldman, Executive Vice President, Financial Lines, Chubb. "Family office executives and professional staff can be sued for a broad array of liability issues ranging from employment discrimination and the mismanagement of funds to professional negligence.
"We are excited to launch these updated coverages and make them available through one customizable package."
Family offices, which help high-net-worth families preserve and transfer wealth, offer a mix of professional and trustee services involving fiduciary standards of care. Supported by a dedicated team of liability claims specialists, Family Office Amplifier includes:
Professional liability coverage to help protect directors, officers and other family office professionals accused of breach of fiduciary duty, inadequate or inaccurate advice, or professional errors or omissions.
Trustee liability coverage to help protect a family office against claims alleging violations of trust agreements while acting as a trustee for trusts administered or advised by the family office.
Employment practices liability coverage to help protect family office professionals against discrimination, harassment, wrongful discharge and defamation claims.
Many coverage terms and conditions in the new family office product have been updated to reflect today’s evolving financial services industry, including:
The definition of 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.
The policy now specifies that covered professional services include the review, selection, and monitoring of other funds invested in by the family office private fund and the investment in, formation, capitalization or disposition of a portfolio company.
If the policy is renewed, claims can be reported up to 180 days after policy expiration. Previously, notice was required as soon as practical but not later than 60 days.
Once Chubb has received all requested information after a claim has been submitted, it will advance defense costs to the insured within 90 days. Previously, defense costs were paid at final disposition of claim.
The new policy is fully non-rescindable.
Chubb has a long history of providing specialized insurance products and risk management services to family offices, financial institutions and high-net-worth individuals.
In February 2016, for the second consecutive year, Chubb was recognized as the Best High-Net-Worth Insurance Company by Private Asset Management (PAM), a leading publication that reports on the wealth management and family office industry.
Product highlights are summaries only; please see the actual policy for terms and conditions. Product offerings may vary by location.