IMI insurance is a package policy that covers three major areas of exposure: professional liability, directors and officers’ liability and crime.
Professional liability covers the entity and its employees for liability arising from the performance of their duties as investment managers.
Directors and officers’ liability covers the managers of the entity for liability incurred in that capacity.
Crime covers the entity for direct loss caused by fraud committed by staff or external parties. 
Loss arising out or property damage or personal injury
Fraud or deliberately unlawful acts (except under the crime cover)
Claims from insolvency of the company
Claims or circumstances that you knew about before you incepted the policy Investment managers have exposure to their clients when things don’t go as planned. Further, the litigation risk is not limited to investors who can make claims, investment management firms, their senior executives and company directors owe a duty of care to a wide array of stakeholders including firm shareholders, fund unit holders, employees and third parties.
It’s not just the risk of a successful claim that can seriously impact the ongoing viability of an investment management firm, defence costs alone (even for a frivolous claim) could tie up valuable resources for months on end, and in some cases force an uninsured Investment Manager to shut the doors as they may not be able to fund the legal expenses.
Investment Managers Insurance (IMI) is a program to cover the often complex and unique risks that Investment Managers face on a daily basis. Traditional Professional Indemnity (PI) and Directors and Officers (D&O) policies will not adequately cover those risks.
There are two main factors that influence the cost of the policy:
