Financial Institutions

What is Financial Institutions insurance and why is it needed?
We focus on insurance for private or SME financial institutions.

ASIC requires organisations with an Australian Financial Services License (AFSL) to have professional indemnity cover in order to operate.

We also offer covers for directors’ and officers’, which includes an assortment of policy extensions such as legal defence costs.

Crime covers is also on offer depending on the client’s needs. Crime protects the Financial Institution against loss of assets from employee or third-party fraud. This may occur through robbery, forgery, funds transfer or computer fraud.

Insurance is just part of best practice and good compliance for financial institutions.

Which financial institutions do you write and who is the cover for?
Essentially, we specialise in small to medium size enterprises.

We typically write cover for:

• Investment & Fund Managers
• Corporate Advisors
• Asset Managers
• Investment Consultants
• Private Equity firms
• Venture Capital companies.
  

What does the cover consist of?
We have three main products:  PI, D&O, and Crime. These can be purchased separately or as a package.

Tell us about Investment Managers’ Insurance.
Investment Managers Insurance or IMI combines these three lines of cover.  They can be purchased in any configuration with shared or separate limits.

PI – This product insures the investment manager and each of the funds

D&O – Includes cover for legal defence costs, for legal action from a third party.

Crime – This encompasses fidelity and includes third party theft which is very important for managers of investors’ money who use outside service providers.

Why have a product that is so interchangeable with limit and product?
In the SME space for Investment Managers, it may be more cost effective as a start-up business to purchase only a shared limit or just two of the three products.

Investment Managers may also wish to hold D&O cover separately to the PI & Crime so they can quarantine the limit for directors.

To learn more about our Financial Institutions cover contact the Keystone team today.