The alternative investment fund managers directive (AIFMD) imposes specific requirements for hedge fund managers and others marketing to investors in Europe to maintain either adequate capital or professional indemnity/errors & omissions insurance (PI) sufficient to cover certain potential claims. While alternative investment fund managers (AIFMs) in the E.U. have many AIFMD-compliant products to choose from, PI policies purchased locally by many U.S. and other non-E.U. AIFMs may not meet AIFMD requirements. In a guest article, Simon Holt, Senior Underwriter – Financial Institutions at Pioneer Underwriting Limited, examines the requirements for PI insurance under AIFMD; the availability of such insurance to AIFMs; common areas where insurance policies fall short of the AIFMD requirements; and AIFMD-compliant insurance solutions available to U.S. AIFMs. See also “Passports, Platforms and Private Placement: Options for Marketing Funds in Europe in the Post-AIFMD Era,” Hedge Fund Law Report, Vol. 8, No. 17 (Apr. 30, 2015).