Liability insurance for family officesBy Andrew Rickard | November 10 2016 09:52AM
Those who manage the affairs of high-net worth families can now obtain liability insurance from Chubb.
In the 19th century, magnates like John D. Rockefeller and J.P. Morgan assigned the management of their familial wealth to a single firm. These family office arrangements continue to exist today, where a group of professionals look after the assets of a sole client or a handful of wealthy people.
To address the liabilities these kinds of firms face, Chubb launched its Family Office Amplifier product yesterday. It covers a variety of risks including professional liability, trustee liability, and employment practices liability. The policy will cover not only a family office, but also a subsidiary of the family office, a trust, private funds (including management entities such as general partners), managing members and advisors, as well as the investment holding companies of any trust or private fund.
"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," says Cameron Rose, Senior Vice President of Financial Lines for Chubb in Canada.
After a claim has been submitted and all requested information has been received, Chubb says it will advance defence costs to the insured within 90 days. The insurer notes that product offerings may vary by location.