Overview of Types of Insurance Coverage
Professional Indemnity Insurance (PI)
| Professional indemnity insurance is the most important type of insurance for asset managers. It covers claims asserted by third parties against an insured company or an insured person due to financial losses suffered as a result of substandard services. Professional indemnity insurance is what is known as all-risk insurance; that is, it covers all claims relating to legal liability provided that these are not excluded from the insurance. Advisory success (a prospective profit or loss from assets invested) is not covered. Only so-called workbench errors from consulting services and asset management are insured.
Directors' & Officers' Liability Insurance (D&O)
| Directors' & officers' liability insurance covers losses suffered by shareholders/company owners caused by a management error on the part of an executive body. The insurance also protects executives against claims from company owners. Insured persons include members of the board of directors, members of executive management and corporate bodies.
Fidelity Guarantee Insurance (Crime)
| Fidelity guarantee insurance covers financial losses incurred by the policyholder as a result of criminal acts on the part of its employees, as well as financial losses caused by cybercrime instigated by third parties. This coverage has established itself in Switzerland over recent years due to the increased number of embezzlement cases by employees in our part of the world.