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  • Phone
    Australia Wide: 1300 030 886
    International: +61 3 9522 4000

  • New South Wales
    Head Office
    Level 19
    2 Park Street
    Sydney
    New South Wales   2000

  • Victoria
    Level 12
    717 Bourke Street 
    Docklands
    Victoria   3008

  • Queensland
    Level 32
    10 Eagle Street
    Brisbane
    Queensland   4000

  • Western Australia
    Level 11
    108 St Georges Terrace
    Perth
    Western Australia   6000

Investment Managers Insurance

Investment Managers Insurance provides financial protection against breach of duty, Directors and Officers liability claims and fraud.

Overview Back To Top

Investment Managers Insurance (IMI) is an essential form of protection for financial liabilities that may arise from business activities.  In most cases, a traditional Professional Indemnity or Directors' & Officers' policy will not cater to the exposures faced by the responsible entity arising from the Managed Investments Act.

Our new IMI policy, which now comes in a modular format, provides customised protection for the Professional Indemnity, Directors' and Officers' and Crime exposures faced by the fund manager and its funds under management.

If these exposures are covered under different insurance products or insurance companies, allocating responsibility between these numerous companies can be problematic.  The modular format alleviates these problems often associated with allocating liability between insurers and dealing with different policy limits and languages, definitions, exclusions, retentions and conditions, yet providing the flexibility for including only the insuring clauses that are required.

Our policy provides a competitive and tailored IMI solution for the responsible entity, the compliance committee members, agents and custodians, and investment funds/schemes under management.

Read the Investment Managers Insurance Product Profile and Coverage Comparison documents.

Key Product Highlights Back To Top

 

Increased litigation and investor awareness in Australia

  • Investigation cost to protect Insured Persons on disclosure and suitability enquiries by regulatory bodies.
  • Experienced claims staff with hands-on knowledge in dealing with plaintiffs and regulators on miss-selling, complex suitability allegations and negligent advice scenarios.
  • Broad "related claims" language to handle multiple investor claims as a related claim.
  • Pay on behalf of language to minimise our-of-pocket- expenses for our Insureds.
Complex and evolving regulatory and compliance risks
  • Broad language to cover costs incurred by individuals for investigations into the affairs of the individual or the company by local and foreign regulatory bodies.
  • Investigation cost as a consequence of a raid or on-site visit by an official body.
  • Court attendance costs up to $500 a day for appearing as witness to a covered claim.
  • Full bail and civil bond expenses cover.
  • Legal costs cover in case of confiscations or personal assets or rights of ownership of real estate property.
  • Protection against breach of data protection and privacy laws.
Ability to attract and retain top talent in Australia

  • Additional and separate limit for policyholders' directors.

  • 84 month discovery provision for retired policyholder directors.

  • Cover for alleged wrongful violations of employment practice.

Heightened insolvency risk and economic stress
  • Expanded individual protection following bankruptcy or receivership providing tax liability cover for directors if wrongful act and incapacitation of the company to assume such liability.
  • Insured person extends to include the administrator, heirs, legal representatives, or executor of a deceased, incompetent, insolvent or bankrupt estate.
Executing creation of new funds, alliances and transactions
  • Automatic cover for newly acquired or created funds without notification requirements to the insurer which meets pre-determined criteria.
  • Automatic cover for newly acquired or created subsidiaries without notification requirements to the insurer which meet pre-determined criteria.
  • Broad definition of Investment Advisory Services to include the formation, capitalisation and marketing of a fund.
Reputation risks
  • Public relations expenses to mitigate the adverse affect on an insured person's reputation due to a claim.
  • Defence cost cover in case of proceeding to obtain disqualification from holding office as a director or officer.
  • Costs of crisis management to mitigate impact of crisis events which may disrupt the business operation.
Fraudulent and crime risks
  • Explicit crime section to protect against employee fidelity and third party crime committed against the insured entity.
  • Costs of kidnap consultants to assist in the event of kidnapping, hijacking or wrongful detention of the insured person.
  • Costs of issuance of duplicates of negotiable instruments.
Other concerns
  • Costs incurred in challenging extradition proceeding against the insured persons.
  • Explicit "advance payment of defence costs" language providing further peace of mind.

Read the Investment Managers Insurance Product Profile and Coverage Comparison documents.

Examples of Exposure Back To Top

The broad exposures faced by today’s investment managers are:

  • Violations of investment management contracts;
  • Mismanagement or failure to supervise, for example where a Responsible Entity appoints a rogue portfolio manager;
  • Non fraudulent misrepresentation, for example, failure to clearly specify tax implications of investments;
  • Liabilities that arise under the Managed Investments Act, such as:
    • the statutory responsibilities set out for the Responsible Entity under Section 601FC;
    • the liability of the Responsible Entity for the acts and omissions of its external custodian or its auditors, and
    • the responsibility of Directors to ensure that the terms of the insurance cover affected by the Responsible Entity are adequate.
Why Choose Chartis? Back To Top

You can be sure that you have a dedicated partner in Chartis.  We are focused on servicing your insurance needs today and anticipating tomorrow’s.  We aim for each client relationship to be a true partnership and will take on your challenges as if they were our own. 

By meeting straightforward needs as well as solving complex issues, we make your confidence our number one priority.

Chartis is a world leading property-casualty and general insurance organisation serving more than 70 million clients around the world. With one of the industry's most extensive ranges of products and services, deep claims expertise and excellent financial strength, Chartis enables its commercial and personal insurance clients alike to manage virtually any risk with confidence.