INVESTMENT MANAGEMENT INSURANCE
What is Investment Management Insurance?
Investment management insurance (IMI) is a policy designed to protect investment managers, advisors, and the funds they manage against various risks.
The policy combines professional indemnity, director and officer, and crime insurance coverages. The coverage will help reimburse costs related to lawsuits and financial losses.
It is the ideal insurance protection for investment professionals and their services. Individual professionals can purchase it to cover themselves, or businesses can buy the policy to cover their investment management team.
What Does Investment Management Insurance Cover?
Investment management insurance covers various liabilities and financial loss threats. The insurance policy coverage includes:
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Professional Negligence – e.g. Trading errors, loss of documents and breach of privacy.
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Breach of Fiduciary Duty – e.g., breach of honesty, breach of liability to shareholders, and wrongful mangment decisions leading to financial loss.
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Employee Dishonesty and Fraud– e.g. Employee theft of funds and loss due to fraudulent activities.
The combination of coverage helps investment management companies manage and recover from unpredictable risks that could occur at anypoint
Investment Management Insurance Tips
Investment management insurance will never cover any intentional negligence, criminal activities by management, or fraudulent acts by the company.