Investment managers now face a growing range of risk in their daily operations. This, combined with an industry that is becoming increasingly litigious and regulated, demands insurance protection that is truly tailored to individual risk profiles.

Advocacy and agility in insurance protection is the core of the Lockton approach. Our specialist Financial Institutions team utilize their deep understanding of our clients' financial activities to articulate the resultant risk profile to the global insurance market.

By coordinating with the A-rated specialist insurers available to Lockton , our experts craft a tailored insurance programme that insulates investment managers from any potential risk they may face, be it the misselling of products or the breaching of a fund's mandate – whatever its size.

Why Lockton?

  • Global expertise to service accounts of any complexity
  • 95% client retention rate worldwide
  • Competitive quotes via access to A-rated specialist insurers
  • Dedicated Financial Institutions team support
  • Ongoing assistance with changes in risk, new fund raises, or any other query
  • Negotiation on your behalf with insurers via our claims advocacy offering
  • Smooth, efficient renewal processes via our online proposal form
  • A dedicated Account Executive to serve as your daily point of contact
  • Risk management consultancy, training and support when required

A reputation of global excellence

Our singular commitment to and focus on our clients has driven the consistent growth of Lockton since its inception in 1966.

We challenge our clients where others don't through thorough understanding of their business, its operation and the unique risks faced by them. This focus, as opposed to a fixation on quarterly results, is a key factor in our spectacular levels of client retention and satisfaction.

Investment Manager Insurance FAQs

What financial protection does the Lockton DNA Investment Management Insurance policy provide?

The Lockton D&O Liability Insurance forFunds policy provides financial protection to:

  • Past, present or future directors or officers and individuals with a managerial or advisory function
  • Outside board directors
  • In the event of death, incapacity, insolvency or bankruptcy, the estate or legal representatives of any insured person
  • Employees

Key instances of cover include:

  • Where the Fund or Fund Manager suffers a loss and has no liability or refuses or is unable to indemnify
  • Where the Fund or Fund Manager suffers a loss and agrees to indemnify 
  • Indemnification losses arising from the provision of or failure to provide professional or investment management services
  • AIFMD losses arising out of an AIFMD claim resulting from an AIFMD Fund Manager's provision of fund management services

Has the Lockton Investment Management Insurance wording been reviewed by any external parties?

Lockton's DNA Investment Management Insurance wording has been created for you by our Financial Institutions team with support and input from Simmons & Simmons. This protection is amongst the broadest and strongest in the insurance market.

Can this coverage be used by a Fund Manager subject to the AIFMD?

Yes. The coverage is also suitable for a fund manager who has chosen to hold a professional indemnity policy in respect of their professional liability risks in accordance with Article 9(7) of the AIFMD.

If required, Lockton may provide an official letter confirming the Policy complies with the requirements of the European Commission's Delegated Regulation of 19 December 2012, which implement Article 9(7) of the Alternative Investment Fund Management Directive 2011/61/EU as incorporated in the FCA Handbook with effect from 22 July 2013.

What are the implications if our limit erodes and we breach our AIFMD Required Limit of Liability?

The Lockton DNA policy provides a reinstatement of limits for AIFMD under the Fund Manager Professional Liability Coverage Clause.

If the policy limit does erode, a fresh limit is available by reinstatement solely for the AIFMD Fund Manager. Further details are included within the AIFMD compliance notes within the Lockton DNA Policy.