Financial Institutions Insurance

What is Financial Institutions Insurance

Financial institutions insurance comprises a suite of insurance products developed for the financial industry. AIG’s unique program of products and services help to ensure coverage gaps are proactively identified and mitigated. Our Financial Institutions teams collaborate across underwriting, risk consulting, and claims to help understand each client’s risks, intent, and coverages, so that the policies designed are timely and specific to each client’s needs. Our presence and stability through market fluctuations helps earn our Financial Institutions clients’ trust, while we continue to provide exceptional service. 

Bankers Insurance

In a fast-evolving industry, banks and other lending institutions continually create new products or lines of business that may entail professional liability risks. Whether traditional, or new and emerging professional liability risks, AIG’s Bankers Professional Edge helps provide institutions with protection against alleged negligent acts and errors or omissions in the rendering of or failure to render professional services to third parties. 

Why Your Business Needs Bankers Insurance?

Some Examples may include:

  • A legal firm working on behalf of a client, alleges that a bank employee lost a client’s loan documents.
  • An investment advisor working on behalf of a client, alleges that a credit union made errors in transferring the client’s funds. 
  • A bank is alleged to have made errors in the mortgage documents of a real estate broker’s client. 

What Does Bankers Professional Edge from AIG cover?

  • Professional services
  • Defence costs 
  • Punitive damages

The AIG Advantage

  • Flexibility – with AIG, you can purchase coverage for a wide array of professional services including loan servicing, trust department administration, investment advisory services, and the administration and sale of credit cards. 
  • Specialized claims support – AIG has a dedicated in-house claims unit.

 

Financial Institution Bonds

Financial institutions such as banks and stockbrokerages are required to hold fidelity bonds to protect the organization and its customers. As regulatory requirements may have limited reach, AIG’s Financial Institution Bond i nsurance helps provide extra protection. Our Financial Institution Bonds may help protect companies in the event of a loss of property or assets due to employee dishonesty, theft on premises, theft in transit, forgery, securities, and counterfeit currency.  Financial Institution Bond insurance covers additional risks that institutions face every day.

Why Your Business Needs Financial Institution Bond Insurance?

Some Examples may include:

  • A bank employee steals money from a safe.
  • A stockbroker forges a customer’s name on a cheque.
  • A trust company employee steals a laptop computer. 

What does Financial Institution Bonds from AIG Cover?

  • Solutions available for compliance with FINRA Rule 4360
  • Sub-limited impersonation fraud coverage

The AIG Advantage

  • Tailored coverage – Forms tailored to provide coverage for specific groups of financial institutions, while providing flexibility to secure additional coverage with varying limits of liability. 
  • Computer crime coverage – Enhancements available upon request to address a loss due to a variety of technology-related perils. 

 

Investment Management Insurance

When market volatility erupts, the potential for investor litigation rises. Regulatory scrutiny may increase significantly and although investments are made with the expectation to grow in value, sometimes they do not. Which is why the potential for investor litigation against accredited investors or Canadian investment funds has increased. However, securing the management and professional liability insurance to fully protect advisers and funds against a variety of risks can be challenging. AIG provides help – with Investment Management Insurance Edge. 

Why You Need Investment Management Insurance?

Some Examples may include:

  • Violation of investment guidelines and/or investment management contract
  • Allegations of lack of due diligence, unintentional misrepresentation, and suitability
  • Formal regulatory investigations of insured individuals, advisers, and funds

What Does Investment Management Insurance Edge Cover?

  • Investment advisor professional liability insurance
  • Fund professional and management liability insurance
  • Investment advisor management liability insurance
  • Outside directorship liability insurance
  • Distributor professional liability insurance
  • Cost of corrections coverage
  • Automatic coverage for new private or registered funds with no size threshold to adapt to changes in fund offerings during the policy period.
  • Automatic coverage for new private or registered funds with no size threshold to adapt to changes in fund offerings during the policy period.
  • Outside entity executive coverage for claims made against insured individuals serving on the board of a non-profit entity or private portfolio company.

The AIG Advantage

  • Reputation protection – Access to cover the cost of a crisis management firm’s assistance in responding to negative statements made about executives in the media.
  • Claims - Claim cooperation severability to ensure the rights of insured individuals are not impaired if other covered individuals fail to cooperate with the insurer.
  • Global reach  - Global liberalization delivers cross-border coverage, applying optimal local policy language to claims in foreign jurisdictions. Through AIG’s global service platform, insured can secure insurance policies in various countries in conjunction with their master Canadian policy. 

 

Private Equity Insurance

The global landscape for private equity and venture capital firms has changed. Management and professional liability exposures are at new levels. Private equity funds, venture capital firms, and their managers and employees – and their personal assets face increasing threats of litigation. Dissatisfied investors, bankruptcies, regulatory investigations, disgruntled employees, and a myriad of other exposures abound. To help clients respond to increasing professional and management liability exposures, AIG developed its industry-leading professional and management liability insurance solution – Private Equity Professional Edge. 

Why Your Business Needs Private Equity Insurance?

Some Examples may include:

  • An outside director of a private portfolio firm is alleged to have neglected their fiduciary duty.
  • A private equity firm is alleged to have wrongfully terminated a senior employee.
  • The director of a venture capital firm faces a suit to seize their personal assets.

What Does Private Equity Professional Edge from AIG Cover?

  • Outside directors’ liability coverage for firm managers and employees and other insured professionals serving on the boards of both public and private portfolio companies.
  • Full employment practices liability coverage for a firm and its managers for lawsuits alleging wrongful termination, discrimination, harassment, retaliation, and other employment practices violations.
  • Extension of coverage for advisory board members, industry consultants, entrepreneurs in residence and other advisors acting on behalf of a firm.
  • Fully non-rescindable coverage.
  • Coverage specifically designed to address the complex organizational structure of private equity and venture capital firms, including coverage for general partners, parallel funds, co-investment funds, acquisition vehicles, investment managers and advisors, and blocker, feeder, and other similar entities.
  • Automatic coverage for new funds and other related entities created during the policy period withing certain thresholds.

The AIG Advantage

  • Global footprint – Securing local coverage is easier. As your private equity or venture capital firm grows, your coverage can easily expand with our coordinated service platform. AIG streamlines access to private equity management and professional liability insurance policies that are aligned with local laws, regulations, and customs worldwide.
  • Claims and litigation resources – Industry-leading claims specialists, premier legal defence firms, mediators, forensic experts, crisis communications professionals, and other prominent resources help to protect your assets and reputation when faced with a claim. 
  • Backed by its financial strength, AIG helps to ensure the ability to pursue the best result for policyholders in litigation.