New York, NY (November 28, 2006) - Maloy Risk Services, a specialty insurance brokerage for Hedge Funds, Private Equity, Technology and LifeScience companies, reached a definitive agreement to provide a suite of insurance products to the membership of The Hedge Fund Association (HFA). The program includes Directors and Officers Liability, Professional Liability, Employment Practices, Fiduciary Liability, Crime as well as the general insurance lines Property, Casualty and Worker's Compensation.
Company Founder and CEO Richard A. Maloy, Jr. explained, "We have structured similar programs for associations like the New Jersey Technology Council and are bringing that same marketing experience and structured solutions approach to The HFA. Our penetration rate in the NJTC is 35% and we have provided specialty coverage and pricing for those members, we are implementing the same concept within The HFA."
By working with the underwriters ahead of time, Maloy Risk Services creates products that are specific for the industry group and works on upfront structured endorsements to create real value to the membership. This approach provides underwriting clout and buying power for the membership, while allowing each company to be underwritten on their own merits. The use of Maloy's sister company, InsureHiTech, allows members that already have a broker relationship access the programs. InsureHiTech is a specialized wholesale broker that provides market access and expertise to retail insurance brokers nationwide.
Lara Block, Executive Director of the HFA adds: "In an effort to bring more value to our membership we have partnered with Maloy and InsureHiTech because of their experience with hedge funds as well as their ability to market within associations. The Directors and Officers and Professional Liability products have become a major issue for many of our hedge funds and their investors, particularly in light of recent high profile fund failures. These are important issues to our membership and providing them with niche expertise and products makes perfect sense."
The program has the involvement of the eight major insurers in the space and Maloy Risk Services has tailored a suite of endorsements to the insurance contract to ensure the best coverage possible in the industry. The volume of submissions and preset underwriting requests from Maloy creates the preferred pricing for the members. The policy provides coverage for SEC investigations as well as other regulatory investigations, errors in trade execution, class action suits resulting from divergent strategies not outlined in the offering memorandum, miscalculation of the NAV, breach of fiduciary obligations, theft from employees, non-compliance with ERISA and host of other potential exposures.
About Maloy Risk Services:
Maloy Risk Services, Inc. is a fifth generation owned and operated property and casualty insurance broker with offices in NYC and Princeton, NJ. Since 1872, Maloy Risk Services has provided risk management services to clients across the country. The niche aspect of the business created and fostered by the fifth generation CEO, Richard Maloy, Jr., has been the focal point of the company's storied history. Unlike most brokerage operations, Maloy Risk Services has grown organically by using technology and market specialization, creating a truly unique brokerage operation that caters specifically to hedge funds, venture capital, technology and life sciences companies.
About Hedge Fund Association:
The Hedge Fund Association is a not for profit organization founded in 1996 by Dion Friedland with the primary goal of educating the public and the media about the misperceptions of hedge funds, and promoting the image and popularity of hedge funds. The Hedge Fund Association has a goal of uniting the hedge fund industry and to continually increase awareness of the advantages and opportunities in the hedge fund industry. To find out more about the association and benefits available to members please visit www.thehfa.org.
For further information contact:
Rick Maloy, CEO