FAQs
Investment managers insurance is a specialised policy that protects investment managers and their firms against claims of negligence, regulatory breaches, and ensuring stability and continuity. These include, but are not limited to, financial institutions, managed investment schemes, asset managers and more.
Absolutely. Investment managers insurance includes coverage for defence costs, ensuring financial support during legal disputes or regulatory investigations.
Responsible entities such as financial institutions or fund managers managing investment trusts benefit from tailored coverage that addresses their unique responsibilities, including protection against civil fines and allegations of mismanagement.
While many investment managers insurance policies cover asset managers and senior managers, the extent of that protection can vary significantly. Some policies may offer robust coverage against claims of negligence or errors in managing funds and investments, while others may have limitations or exclusions.
That's where the expertise of an insurance broker becomes crucial. We can help you navigate the complexities of different policies, identify potential gaps in coverage, and ensure the chosen policy aligns with your specific needs and risk profile.
A good broker will explain the nuances of different underwriters' terms and conditions, allowing you to make informed decisions about your insurance coverage.
Yes, responsible entities managing portfolio companies can benefit from financial lines coverage, which protects directors and officers from personal liability and addresses risks such as civil fines or regulatory penalties stemming from operational challenges.
Yes, fund managers are typically covered for claims related to the management of funds, including allegations of mismanagement, litigation claims, and breaches of fiduciary duties.
Yes, venture capital firm executives can be covered by investment managers insurance. This type of insurance offers protection against personal liability for claims alleging things like negligence or errors in managing investments.
However, it's important to understand that the specifics of what's covered can differ between insurance providers. Some policies might have limitations or exclusions that are relevant to venture capital activities.
That's why it's crucial to work with an insurance broker who understands the nuances of investment managers insurance in Australia. We can help you find a policy that adequately covers the unique risks faced by venture capital executives.
Investment managers insurance doesn't protect against losses from market volatility or poor investment decisions directly. Instead, it protects investment managers, directors, and officers from legal and regulatory risks associated with their professional services.
Imagine a doctor performing surgery. Investment managers insurance is like malpractice insurance for doctors. It doesn't cover the patient's underlying illness (market volatility) or guarantee a successful outcome (positive returns). Instead, it protects the doctor from lawsuits alleging they acted negligently or made errors during the surgery (investment management) that harmed the patient (investor).
This includes claims of negligence, breach of fiduciary duty, or misrepresentation, even if triggered by market events.
Key coverage sections include protection for litigation claims, defence costs, personal liability, and coverage for employees’ actions that may expose the company to financial or reputational harm.
Financial lines insurance provides comprehensive coverage for fund managers and directors and officers, providing important cover against litigation, regulatory breaches, and claims related to management errors within financial institutions. It offers protection even when issues like declining returns lead to disputes or client dissatisfaction.