Investment adviser

Tailored industry coverage

 

Why purchase tailored coverage?

Insurance for Investment Advisers helps them protect their business and their reputation. Constantly evolving regulatory and market environments make it more important than ever for investment advisers to protect themselves with liability insurance tailored for the specific risks they face.

Capacity

$5M maximum limit.

Coverage & Benefits
  • Primary coverage includes:

    • Errors and omissions (E&O) coverage for claims alleging the insured did something it shouldn’t have done, or should have done but didn’t, in the course of conducting their business.
    • Built-in coverage for pre-claim inquiries of insured persons, such as costs to respond to an informal investigation or inquiry of the insured’s business activities.
    • Crisis management expenses such as engagement of a public relation firm and expenses related to notifying customers of a crisis.
    • Extradition costs coverage should an insured person be extradited in order to face charges in another locale.
  • Secondary coverage may include:

    • Lender Liability, which covers claims related to lending activities,
    • Employment Practices Liability (EPL) to protect the company from lawsuits brought by employees,
    • Fiduciary, covers the liabilities of those responsible for managing employee benefit plans, and
    • Employed Lawyers to cover in-house attorneys.
FAQs
  • Do you have the ability to offer cyber coverage?

    Cyber can be included on this policy as a separate coverage part
     

  • I already buy D&O, why do I need to buy E&O?

    D&O coverage generally excludes claims brought by customers or regulators alleging the failure to provide professional services.  E&O is designed to provide that coverage.
     

  • Does your policy respond to an informal regulatory investigation?

    While informal investigations do not traditionally meet the definition of claim, our policy can provide defense coverage for insured persons to respond to informal regulatory investigations.
     

  • Would trade errors be covered under this policy and if not, could they?

    Trade error coverage can be added to the policy.
     

  • Does the policy only cover services as defined by the Investment Advisers Act of 1940?

    No, it expands upon that definition and includes legal, compliance, and regulatory services in connection with other investment adviser services.

Related products

Package Investment advisers coverage with the following products: Cyber and Management Liability.

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Claims scenarios 

Not sure what risks our product covers? We’ve brought some scenarios to life.

Investment adviser

An investment adviser invested client assets in an unregistered fund managed by a third party. The fund turned out to be a fraudulent scheme, and the investment adviser was sued by his clients for failing to perform due diligence on the fund manager. 

Investment adviser

An investment adviser invested client assets in an unregistered fund managed by a third party. The fund turned out to be a fraudulent scheme, and the investment adviser was sued by his clients for failing to perform due diligence on the fund manager.