Telling the Story: Why Your Insurance Application Isn’t Your Risk Profile

Each year, management liability underwriters require private fund managers to complete renewal applications as part of the insurance placement process. If you’ve ever been responsible for these forms, you’ve likely wondered how much value they really provide. Are they necessary? Do they really tell underwriters what they need to know?

The short answer is both yes and no.

Yes, the application is necessary. Insurers must follow a formal and regulatory process to document risk. However, the application alone does not capture the full story of your firm’s risk profile.

So how are you truly evaluated?

Beyond the fund offering documents or PPMs, audited financials, and prior SEC examinations, underwriters heavily rely on your broker—the advocate responsible for translating your firm’s story into underwriting terms. That story includes how your investment team operates, management experience, how decisions are made, how risks are controlled, how liquidity and leverage are managed, who your investors are, and which third parties support your infrastructure (fund administrators, counsel, compliance, auditors, and technology providers).

Much of this information may appear in your application or fund documents, but only at a surface level. It is the context and detail behind the scenes that determine how underwriting perceives your risk. That difference is often what separates average and superior insurance results.

Golsan Scruggs is a boutique specialist broker focused exclusively on private fund managers. We understand how underwriters evaluate risk and the criteria that are sought after. Representing hundreds of funds across the U.S., we bring insight, precision, and the advocacy required to ensure your insurance program receives the proper attention it deserves.

Golsan Scruggs is an insurance brokerage firm operating throughout the United States, specializing in liability insurance for fund managers. As one of the largest insurers of asset managers in the U.S., we have a dedicated staff of private fund insurance specialists that understand the risks of the financial services industry and deliver superior results. We make the underwriting process painless.

At Golsan Scruggs, we believe it is incumbent upon us to earn the right to be appointed as your insurance and risk-management agent. Our underwriting process exists to serve that purpose.

Our review will analyze your fiduciary exposures, provide rate details and comparisons, and provide a contract comparison. No application required.

To obtain your complimentary review, please provide the following information or contact us at (800)273-5883. Fields marked with * are required.