An investment house is a body authorized to manage investment portfolios for private and institutional clients. The investment house has exposure to claims from investors, customers, embezzlement, cyber risks, and risks of regulatory investigations.
Our special insurance plan for investment houses consists of insurance specifications that are personally adapted to the client’s needs and contain a variety of coverages, including:
Directors and officers insurance (D&0) – protects the officers against personal claims against them, filed by third parties, for negligence in the management and supervision of the business. For example investor claims, claims from competitors and employer-employee relations claims.
Professional Liability Insurance for Investment Managers (FIPI) – will cover the fund for negligence in the provision of its services mainly, errors of omission, negligent investment decisions and more. Professional liability insurance protects the hedge fund against various lawsuits and legal proceedings, among others, due to allegations of breach of the following obligations:
Negligence: Failure to exercise due care in providing advice or financial services
Misrepresentation: Providing false or misleading information to customers
Breach of duty: failure to fulfill obligations towards customers
Conflicts of interest: acting for interests foreign to those of the clients
Violation of laws or regulations
These exposures arise from the nature of their work which involves providing financial advice, managing transactions and handling confidential information. Professional liability insurance protects against these risks and helps the investment manager reduce the fear of lawsuits.
The policy is adapted to the requirements of the Israeli Real Estate Authority as an alternative to collateral.
Cyber insurance – designed to protect investment bankers against financial losses from cyber attacks and various information breaches, which can cause the loss or theft of confidential information, loss of income and damage to reputation for many reasons. It should be understood that as part of their role, investment bankers handle sensitive financial and personal information for clients, which can make them a target for cybercriminals. Cyber insurance provides coverage for costs related to those attacks, including system and data recovery. And, it can also provide liability coverage for claims by customers or others for losses arising from those attacks. Cyber insurance helps investment bankers respond effectively to a breach and minimize financial losses and ensures that they can continue to provide professional services with confidence.
EMPLOYMENT INSURANCE (CRIME) – provides coverage to the company in the event of theft, fraud, embezzlement of funds or equipment directly, or against cybercrimes, which resulted in the loss of funds to the company. The policy provides financial reimbursement to the company, due to losses of money, property or securities, caused by an illegal action carried out by one of its employees.
Business Insurance
We specialize in building a customized plan for an investment house, including unique appendices and extensions for investors and institutional clients.
Our team has extensive experience in insuring private and public investment houses and insuring investment houses specializing in trading derivatives, cryptocurrencies, alternative investments, etc.