“There are significant liability exposures associated with managing and working for a family office,” said Steven Goldman, executive vice president of financial lines at Chubb. “Family office executives and professional staff can be sued for a broad array of liability issues ranging from employment discrimination and the mismanagement of funds to professional negligence.”

The new offering, called Family Office Amplifier, includes: professional liability coverage to help protect directors, officers and other family office professionals accused of breach of fiduciary duty, inadequate or inaccurate advice, or professional errors or omissions; trustee liability coverage to help protect a family office against claims alleging violations of trust agreements while acting as a trustee for trusts administered or advised by the family office; and employment practices liability coverage to help protect family office professionals against discrimination, harassment, wrongful discharge and defamation claims.

Chubb said it has updated many of the terms and conditions in the product to reflect the changing financial services industry landscape. For example:

•     The definition of organization now includes any trust, in addition to family office; subsidiary of the family office; private funds, including management entities such as general partners, managing members and advisors; and investment holding companies of any trust or private fund; and
•     The policy now specifies that covered professional services include the review, selection, and monitoring of other funds invested in by the family office private fund and the investment in, formation, capitalization or disposition of a portfolio company.