Capital Raising Advisor PI Insurance

Capital raising advisor Professional Indemnity insurance covers the work of corporate finance and capital-raising advisers - advising businesses on raising capital, preparing materials and introducing them to investors. It responds when a client or investor alleges your professional work was negligent and caused a financial loss, and it funds the legal cost of defending that allegation, including claims that are ultimately unproven.

To an underwriter, 'capital raising adviser', 'fund manager', 'financial adviser' and 'business introducer' are different risks with different claims patterns and appetites. Capital-raising and introducing work can be misread as broader financial services or fund management, which carry a heavier appetite. How your activities are described to the market materially affects which insurers will engage and at what price, so the work needs to be presented accurately.

PI requirements can apply depending on how you are licensed and what you do, and holding or operating under an AFSL does not remove your professional liability for your work. The specific obligations attached to your licence and activities are something to confirm against your own circumstances and your licensee - this page is general information, not legal or compliance advice. What we can do is arrange a PI policy that responds to your capital-raising activity and meets the limit your mandates require.

PI responds to negligence in your professional work. It does not insure the commercial outcome of a raise or investment, it does not respond to fraud or intentional wrongdoing, and it does not pick up activities outside your engagement scope or licence. Known claims or circumstances not disclosed to the insurer are excluded. We review your activity split so the wording responds to what you actually do.

A capital-raising file presented as generic financial services can attract a much heavier premium, or a step-back, compared with the same risk presented accurately - activity split, wholesale or retail clients, licensing and the controls you have in place. We have seen the same risk move a long way on price once it is mapped to the right specialist market and described properly.

Often, yes. Capital-raising and corporate finance advisers are a known hard-to-place wedge because the activity sits between several insurer appetites. A referral or step-back reflects one market's appetite, not the whole market. We map the specialist financial-lines underwriters who write this class and present the submission the way they need to see it. See declined and hard-to-place PI.