Investment Management Insurance
Investment Management Insurance is a flexible, cost efficient insurance program
designed to address the specific management liability, professional liability and
crime exposures faced by Investment Managers. It provides umbrella protection for
those financial liabilities which traditional Professional Indemnity or Directors
and Officers insurance policies will not provide unless significantly
amended.
An Investment Management Insurance policy is specially tailored to respond to those
claims frequently encountered by investment managers, responsible entities, investment
trusts or funds and their professionals as well as directors and officers of each
of these entities.
The structure and inter-relationship between investment management companies and
investment funds creates a myriad of potential exposures. Investment mangers are
likely to owe duties, as both company officers and as professionals, to shareholders,
investors, employees and third parties. One mistake may lead to claims from any
or all of these parties.
Investment Management Insurance policies typically provides coverage for:
- Responsible entities
- Investment managers
- Investment advisors
- Fund managers
- Venture capitalists
- Private equity firms
Investment Management Insurance Cover highlights includes:
- Cover for entity
Professional liability insurance for investment advisors/managers and funds when
providing investment advisory services. Crime cover provides protection to the Investment
Manager and the Funds for loss following theft by Employees or any other person.
- Cover for individuals
Professional Indemnity and Directors and Officer Liability/Company Reimbursement
Insurance is included to protect both professional indemnity claims and management
liability claims against investment advisors/managers and Funds, including their
senior managers, directors and Compliance Committee members.
Key Features of an Investment Management Insurance policy typically include:
- Violation of investment guidelines and/or investment management contract
- Breach of securities regulations
- Shareholder class action suits
- Allegations of lack of due diligence, unintentional misrepresentation, incorrect
execution of orders, and suitability
- Individual insureds that are the subject of a regulatory investigation
- Exchange traded funds and hedge funds
- Punitive damages, where insurable
Investment Management Insurance policies can also include amongst other things:
- Coverage for the management liability exposures of entity investment advisors
- Final adjudication language
- Order-of-payment provisions
- Worldwide protection for any covered claim, including trading exposures
- Broad definition of employee
- Protection for advisory board members
- Protection for domestic partners
- Post-policy reporting period
Contact us
for further information and/or details concerning IMI insurance scope and terms
as specified in the policy wording.
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