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H E D G E F U N D SO V E R V I E W
N E W Y O R K | D A L L A S | H O U S T O N | L O S A N G E L E S | M I A M I | P A L M B E A C H | P H I L A D E L P H I A
P O R T L A N D | S A N F R A N C I S C O | W A S H I N G T O N D C
O U R A P P R O A C H
For over 80 years, Crystal & Company has been a leading strategic risk and insurance advisor to
financial institutions building strong, trusted relationships within the financial and insurance
communities. Hedge funds comprise a significant portion of our client base and we have a deep
understanding of their specific needs. Our professionals provide creative and strategic solutions that
directly address the unique needs of our hedge fund clients.
T H E C R Y S T A L D I F F E R E N C E
Technical expertise, market relationships, and business acumen are the keys to designing and
negotiating effective coverage. Understanding how to apply these elements in the service of our
clients’ broader risk management and business objectives is what distinguishes the professionals at
Crystal & Company.
: Our Financial Institutions Group is steadfast in keeping up with the service trends and ever-
changing rules set forth by regulators. We provide advice and offer insurance solutions for these
exposures as well as handle client requests on a daily basis.
: We leverage our relationships in the insurance marketplace to help hedge funds accomplish their
risk management objectives and business goals.
: Our team is distinguished by our experience and understanding of the hedge fund industry.
We develop long-lasting relationships with our clients, who recognize us for our knowledgeable
advice and fierce advocacy on their behalf.
: We develop tailored products and solutions to address the unique exposure faced by each
hedge fund.
S O L U T I O N S
: Professional Liability / Errors Omissions
An Errors Omissions policy provides coverage to hedge fund managers for claims arising out of
alleged act, error, omission, neglect, or breach of duty committed in connection with the perfor-
mance of investment advisory or investment management services. This coverage is typically
part of a blended Management and Professional Liability Program which is intended to provide
both Directors Officers and Errors Omissions coverage for hedge fund managers, the hedge
funds themselves and any general partners, managing members, or boards of directors.
(continued)
H E A D Q U A R T E R S
32 Old Slip
New York, NY 10005
8 0 0 . 2 2 1 . 5 8 3 0
W W W . C R Y S T A L C O . C O M

W W W . C R Y S T A L C O . C O M 8 0 0 . 2 2 1 . 5 8 3 0
Crystal Company is a leading strategic risk and insurance advisor, addressing clients’ risk management, insurance brokerage, and
employee benefits consulting needs. The firm is comprised of more than 400 professionals, each distinguished by their technical
expertise and industry-specific knowledge, and driven by their passion for client service. Crystal Company is headquartered in New
York with 10 regional offices throughout the country, placing over $1 billion in premiums annually in the global insurance marketplace.
Established in 1933, the company has sustained its independence through 80 years and three generations of Crystal family ownership
and management.
Crystal Company is a member of Brokerslink, a global alliance of leading independent insurance brokerages spanning more than
80 countries and 300 cities across the world.
© 2014 Crystal Company. All Rights Reserved. 9/14
: Management Liability / Directors Officers Liability
Hedge funds are at risk of civil and criminal litigation being brought against their management
team. A Directors Officers policy provides coverage for individual directors, officers, partners,
and the hedge funds for alleged act, error, omission, neglect or breach of duty committed in their
management capacities. This coverage is typically part of a blended Management and
Professional Liability Program.
: Employment Practices Liability
Even a hedge fund manager with sound human resources policies and procedures can experience
an employment-related claim. In order to address this potential exposure, an Employment Practices
Liability policy may be purchased, either on a stand-alone basis, or as part of a Management and
Professional Liability Program. This policy provides coverage for defense costs and damages
as a result of employment-related claims, such as discrimination, harassment, retaliation, and
wrongful termination.
: Fiduciary Liability
Hedge fund managers are deemed to act as fiduciaries when they have discretion over certain
types of assets. A Fiduciary Liability policy is designed to provide coverage for claims brought by
employees, participants, and beneficiaries of hedge fund manager-sponsored health, welfare, and
benefit plans. This coverage may be purchased on a stand-alone basis, but is often included as
part of a Management and Professional Liability Program.
: Cyber Liability
This policy affords two types of coverages: first-party reimbursement and third-party liability.
First-party coverage reimburses the hedge fund manager for costs associated with investigating
and terminating a security breach and notifying, working with, and offering remedial services to
potentially affected clients. Third-party liability provides coverage for claims arising from a hedge
fund manager’s failure to protect sensitive personal or corporate information.
: Fidelity Bonds
A basic fidelity bond provides coverage for loss of money, securities, or other property owned
or held by a hedge fund manager when loss is due to the dishonesty of a hedge fund manager’s
employees. When assets which are subject to ERISA are being managed, a hedge fund manager
is required to provide bonding for a limit equal to 10% of the asset value of the plan, subject to a
$1,000 minimum limit and up to a $500,000 maximum.

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Crystal & Company - Hedge Funds Sector Overview FINAL 10.9.14

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