On May 2, 2013, a panel of experts from K&L Gates, Jamison & Co. L.L.C. and ACA Compliance Group hosted a webinar entitled, “Issues Arising from SEC Investigations of Private Fund Managers: How to Prepare for an Investigation and How to Maximize the Odds of Obtaining Insurance Coverage.”  This article, the second in a two-part series covering the webinar, addresses insurance coverage for hedge fund managers, including: an overview of directors and officers and errors and omissions policies; the state of the market for insurance coverage for hedge funds and managers; the risk of relying on fund indemnification without obtaining insurance; judicial decisions providing guidance on the scope of coverage, including with respect to SEC investigations; steps that funds and managers can take to maximize insurance coverage for SEC investigations; the SEC’s enforcement push; steps managers can take to formulate a plan for handling an SEC investigation; common mistakes managers make during investigations; and measures that managers can take to minimize enforcement risk.  See also “Hedge Fund D&O Insurance: Purpose, Structure, Pricing, Covered Claims and Allocation of Premiums Among Funds and Management Entities,” Hedge Fund Law Report, Vol. 4, No. 41 (Nov. 17, 2011).