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.
IMI insurance is a package policy that covers three major areas of exposure: professional liability, directors and officers’ liability and crime.
Tipically it covers things like:
Examples of typical exclusions are:
1 Factor 1 – the funds under management, the higher the FUM the more insurers charge.
2 Factor 2 – the amount of insurance (the limit) you choose. The amount insurers charge increases with the amount of limit that you choose to buy
If you’d like to have a conversation with one of our team, please send us your name, email and phone number and we’ll get back you to as soon as possible.