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Investment Management Insurance
Customized coverage for investment professionals
This coverage provided and serviced by affiliated and third-party insurers.. Read more
Curate an investment management policy that meets your business needs
Helping clients make smart investment decisions is rewarding, but even small mistakes can create big business risks. Investment management insurance protects your firm from claims of negligence, misrepresentation, breach of duty, or errors in judgment, safeguarding your reputation and financial stability.
We tailor our policies to fit the way you work, keeping your business protected at every phase of growth.
What is investment management insurance?
Investment management insurance is customized business insurance that addresses the specific needs of advisors and asset management firms. It can also be called investment insurance, investment advisor insurance, or asset management insurance.
Whatever name it goes by, investment insurance can protect you from lawsuits, data breaches, and damage to company property.
Not sure what you need for your firm or consultancy? Our experts can advise you on the right coverages and limits. Call us or start an online quote today to learn about our customized policies and get the protection you need to invest confidently.
Why investment management insurance is important
Firms that handle money, investments, and other assets need specialized coverage for unexpected challenges.
For example, if a client says you gave a recommendation that lost them money, an investment insurance policy can help protect your reputation and bottom line. It may cover legal expenses and settlements, regardless of whether the claim is true.
If you need coverage to meet contractual or professional obligations, you should get a certificate of insurance (COI). This document summarizes your policy so that clients, professional associations, and others can confirm you're insured. With Progressive Commercial, getting a COI is quick and easy.
Who needs investment insurance?
Insurance is an important risk management tool for those in the financial and investment sectors. Professionals and businesses that can benefit from insurance for investment management firms include:
- Investment managers
- Financial advisors
- Investment strategists
- Investment bankers
- Investment advisors
- Stockbrokers
- Private wealth managers
- Private equity firms
- Venture capitalists
- Hedge fund managers
Whether you consult as a sole proprietor, run an LLC, or work for a fintech startup, investment insurance should be part of your company's protection strategy.
Types of insurance for investors
Investment management requires trust and accountability. Whether you're advising prominent clients, managing business portfolios, or navigating regulations, you're exposed to potential risks that could lead to legal claims and threats to your reputation. Understanding your business insurance options and how each plays a crucial part in protecting your company is essential. A robust investment insurance policy typically includes the following:
General liability (GL)
Covers you for third-party injury and property damage
General liability (GL)
Covers you for third-party injury and property damage
General liability insurance pays for damage and injury you accidentally cause others. GL also covers personal and advertising injury claims like slander, libel, and copyright infringement. Learn more about the benefits of general liability and the cost of general liability insurance.
Example: A client visiting your firm for an investment seminar trips over exposed computer wiring and fractures their wrist. GL pays for their medical bills and legal expenses if they file a claim.
Business owners policy (BOP)
Combines liability and property coverage in one convenient policy
Business owners policy (BOP)
Combines liability and property coverage in one convenient policy
A business owners policy combines liability protection with commercial property coverage for business assets, such as computers, furniture, and buildings. A BOP is customizable and includes other valuable coverages, such as business interruption, which helps with lost income and temporary expenses if you're forced to pause business operations.
Example: Thieves break into your office and steal company laptops. Your BOP's commercial property coverage pays to replace the stolen items.
Professional liability
Covers claims of wrong advice, mistakes, and negligence
Professional liability
Covers claims of wrong advice, mistakes, and negligence
Professional liability, also called errors and omissions (E&O) insurance, protects against claims of negligence or bad advice. For investment advisors, E&O insurance may be required by professional associations or certifying bodies.
Example: An advisor at your firm recommends a high-risk fund to an investor, and the client experiences a significant financial loss. Professional liability can protect you if they sue for misrepresentation.
Workers' compensation
Protects employees who get injured on the job
Workers' compensation
Protects employees who get injured on the job
Most businesses need to carry workers' comp insurance to protect employees in case of work-related injury or illness. States set coverage requirements, and workers' comp costs are tied to the number of employees you have, on-the-job risks, and more. Review the guidelines in your state.
Example: An employee gets in a car accident on the way to a client's office. Workers' comp covers their hospital bills, rehab treatment, and a portion of their lost wages.
Commercial auto
Protects your business vehicles and drivers
Commercial auto
Protects your business vehicles and drivers
Businesses that rely on vehicles for work need commercial auto insurance that meets state minimums for liability coverage. For enhanced protection, you can add other commercial auto coverages, like comprehensive and collision.
Example: While away on a business trip, your company car gets stolen from a hotel parking lot. Commercial auto can help cover the cost of replacing the vehicle.
Cyber
Protects against cyber attacks and data breaches
Cyber
Protects against cyber attacks and data breaches
Cyber coverage is useful for businesses that handle sensitive data, like customer account numbers and addresses. This coverage protects you from digital threats like data breaches and ransomware attacks and helps pay for investigations, legal fees, and other recovery costs. Learn more about the price of cyber insurance.
Example: A phishing scam gives attackers access to your internal systems and sensitive client data. Cyber coverage can help with remediation, security upgrades, and legal costs if a client sues you.
Employment practices liability insurance (EPLI)
Provides coverage for employee-related lawsuits
Employment practices liability insurance (EPLI)
Provides coverage for employee-related lawsuits
Employment practices liability insurance protects against allegations of workplace misconduct, such as sexual harassment, discrimination, or breach of employment contract.
Example: A potential job candidate files a claim saying they were rejected based on discrimination. EPLI can cover any legal fees and settlement costs.
Employee dishonesty insurance for investment firms
One act of internal fraud can jeopardize your client portfolios, disrupt trading activity, and undermine the trust your business is built on. Employee dishonesty insurance can help safeguard client assets and protect your firm's reputation if an employee engages in theft, forgery, or other fraudulent behavior.
How much does investment insurance cost?
The cost of business insurance depends on the risks you face. For example, a single financial adviser helping clients plan for retirement will likely pay less than a large firm that manages hedge funds. Some of the factors that insurers use to determine premiums include:
- Annual revenue
- Number of employees
- How long you've been in business
- Value of the assets you manage
- Claims history
- Coverages and limits
If your investment and asset management company uses vehicles for business, your commercial auto expense will also contribute to your overall rate. Progressive Commercial can help you save with a multi-product discount for businesses with both a commercial auto and a BOP or general liability policy.
Investment management insurance through Progressive Commercial
Whether you're an investment advisor, financial planner, or wealth manager, Progressive Commercial offers tailored insurance solutions that protect your small business from the unexpected so you can focus on your clients.
Give us a call or start a quote online to learn more about creating a tailored policy you'll be glad to invest in.
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