Indemnification and Insurance
Fund independent directors generally have two potential protections against liabilities to which they may be subject by reason of their service as directors:
- fund indemnification; and
- directors and officers (D&O) insurance (which in the fund industry, is often coupled with “errors and omissions” (E&O) insurance).
Fund indemnification generally allows independent directors to be paid from fund assets for legal expenses and other financial liabilities they may incur as defendants or non-party witnesses in fund-related regulatory investigations, regulatory proceedings and/or civil litigation. D&O insurance generally affords a second line of potential protection for fund independent directors against such liabilities. Although funds are not legally required to purchase D&O or E&O insurance, most funds do.
Independent director liability (IDL) insurance is another type of insurance that some fund groups purchase. IDL insurance is a stand-alone insurance coverage that affords liability protection solely to independent directors, and is designed to supplement the liability protections afforded to them by fund indemnification and D&O/E&O insurance.
Publications
Webinars
Date:
April 16, 2019
Location:
Virtual
Time:
2:00 PM EDT
Date:
October 3, 2018
Location:
Virtual
Time:
2:00 PM EDT
Date:
June 19, 2018
Location:
Virtual
Time:
1:00 PM EDT
ICI Announces Lori Kearns as Retirement Security and Tax Policy Government Affairs Officer
September 26, 2023—ICI, the leading global association representing regulated investment funds, has...
Third Party Resources
Below are links to additional resources created, published, and maintained by other organizations. They are merely a sample of additional resources for fund directors. IDC does not control, cannot guarantee, and is not responsible for their accuracy, timeliness, or continued availability. These links are provided solely as a service to fund directors and should not be construed as indicating in any way that IDC endorses either the content provided or the third-party providers of any such content.