Whether you are an investment advisor, hedge fund manager, a private equity firm, a family office or a venture capital firm, you face complex professional and management liability risks coming from regulatory changes or the volatility of the global market. With wide risk exposure, asset managers may face potential lawsuits, regulatory issues or unhappy customers that could lead to unexpected financial burdens. Claims could be raised against the management, the firm or the funds itself so it is important to protect all through proper asset management and funds insurance coverage.
We have reviewed the key policies that you will need to consider for the safe operation of your business:
(or errors and omissions liability). Professional Indemnity insurance will cover any negligence or mistake that you make while managing the company funds. Insurance will pay for legal fees as well as legal proceedings following errors and omissions in providing advice or investment management services.
The firm or its managers can be directly sued by an employee, a shareholder or a competitor for losses resulting from their actions and decisions while managing the firm. Hence, the directors and officers liability insurance is crucial in this type of activity. A bankruptcy, merger or acquisition could also lead to claims from shareholders that are affected by the outcome.
This insurance will also be needed to protect the fund directors, trustees and general partners.
All businesses and asset management companies currently face a cyber risk. Investment funds also need protection against loss or theft of electronic information as it can result in claims from an affected third party. Cyber insurance is complementary to professional indemnity insurance.
Check out as well, the insurance requirement from the local regulator. Whether you are a financial advisor or large investment fund company, you will have to buy a certain amount of professional indemnity insurance to comply with local regulation.
Working with an intermediary and insurer that understands your business is key to securing your business and navigating through potential claims that could arise from your business operation. Get in touch with our team so we can understand your insurance needs.