Mutual Fund Insurance

What Does Mutual Fund Insurance Mean?

Mutual fund insurance offers specialized coverage to protect mutual funds from various risks inherent to their business operations.

A mutual fund is a collection of funds contributed by investors and managed by a professional money manager.

Insuranceopedia Explains Mutual Fund Insurance

Mutual fund insurance can cover various risks, including directors’ and officers’ liabilities, fidelity bonds, and cybersecurity threats. It plays a vital role in protecting mutual funds from severe losses due to risk exposure.

Managing substantial assets, often worth billions, makes it essential for mutual funds to have robust insurance coverage to safeguard their operations.