Hedge Funds

AIG takes aim at hedge fund insurance market

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The American Insurance Group, one of the world's largest insurers, is aiming to build inroads into the hedge fund market by offering professional liability coverage tailored to hedge fund directors and managers.

The new product, called Hedge Fund Protector, provides liability insurance for directors, officers and partners at fund groups as well as for errors and omissions. AIG had offered similar coverage on an a la carte basis; the new product marks the firm's first effort to offer comprehensive umbrella coverage.

Premiums will vary based on an assessment of a given strategy's riskiness, but policies would broadly cover litigation