Investment manager liability insurance typically comprises, at a minimum, PI and D&O cover (including cover for legal representation at regulatory investigations) but can frequently also extend to cover losses arising from other risks such as crime, fraud and cyber attack. Policy wordings are often complex and / or imperfect and new wording innovations regularly come to market. Brokers cannot always be relied upon to carry out an effective and detailed audit of the drafting, therefore, regular legal review can result in meaningful improvements to cover.
There is also a need to consider the developing legal risk profile of investment managers, particularly in light of the extension of the Senior Managers Regime due in 2018. Certain policy extensions and standalone ring-fenced policies are being brought to market to help mitigate these risks. Although brokers often have their own solutions to these issues, we are ideally placed to provide an impartial legal view.