In an environment where regulation is tightening and investor expectations are rising, investment managers face complex and evolving risks. From alleged mismanagement to administrative errors and compliance breaches, even a single incident can threaten your reputation and financial stability.
At Barrack Broking, we work with fund managers, investment advisers, and responsible entities to design tailored insurance solutions that address these exposures and protect your business — so you can focus on generating value for your clients.
Investment Managers Insurance (IMI) is designed for Australian Financial Services Licence (AFSL) holders that raise capital or manage assets on behalf of investors (investment managers). It combines three forms of insurance cover into one policy. The main purpose of consolidating these insurances into a single contract of insurance is to avoid gaps in coverage that may arise if those insurances were placed separately and with different insurers.
The key coverage sections include Professional Indemnity, Directors & Officers and Cyber:
The Professional Indemnity section covers the AFS licensee or manager for claims alleging misrepresentation, acts, errors and omissions in connection with its “financial or investment services”. The indemnity includes cover for legal costs and expenses (to defend actions) and in the event there is liability, coverage is provided for compensatory damages. Cover is often extended to cover legal representation costs where regulators allege breach of statute in the provision of financial services, and some policies will, where permissible by law, pay fines and penalties for such breaches.
The D&O section covers directors, officers, trustees, compliance or investment committee members for wrongful acts alleged against the directors and officers of the company in the context of their management of the Responsible Entity/manager and any of its controlled funds or trusts.
The Crime section covers the Responsible Entity/manager for internal (employee theft) and external crime that causes it to suffer a “direct financial loss” of money, securities, inventory or other property in its care, custody and control. Cover can extend to include forgery of negotiable instruments such as cheques and for losses arising from third-party forgery; and computer crime, including electronic funds transfer fraud.
Such as:
Investment Managers, including directors, officers, and trustees, can be susceptible to lawsuits, regulatory proceedings, or written demands by disgruntled investors or third parties. Directors and senior managers can be held personally responsible for any exposure arising out of the management of their entities and funds.
Common occupations suitable for IMI insurance include Fund Managers, Private Equity managers, Hedge Funds, Real Estate Investment Trusts (REITs), Exchange Traded Funds and Private Credit Funds. We work with private equity and advisory firms on the same set of exposures.
The cover is designed for organisations and professionals involved in provision of ‘investment or financial services’. The definition varies between insurers and can be tailored to the specific serviced provided by a company, however generally it includes:
Our industry experience and professional brokers ensure you have access to the most robust and appropriate insurance that provides all the protection your business needs, at an affordable price.
Our clients rely on us for strategic advice and dependable support.
We’ve always have such a great experience with Barrack Broking. Our Account Manager, Dale is incredibly friendly, easy to deal with, and genuinely attentive to everything we need. Nothing ever
thanks again Dale and Barrack for making the insurance renewal process so smooth and timely yet again
Had a great experience with Barrack Broking – Insurance Brokers Brisbane. The whole process was smooth, professional, and easy to understand. A big shoutout to Amiel – absolute superstar. He
Competitive premiums offered. Great service going over and above. I have peace of mind knowing the insurance policies are looked after by a wonderful highly experienced team. Can not be
Excellent Communication, and provide great options and competitive Premiums. Just a pleasure to deal with. Highly recommend this team to any business owner.
Extremely attentive, took real time to understand the business and saved us a considerable amount on our premium – highly recommended
As all businesses operate in an uncertain world, Barrack Broking is dedicated to delivering strategy, ideas and certainty to protect your business.
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