things you must know about Fund Managers Insurance

What is Fund Managers Insurance?

The Fund Managers insurance policy protects the company in the event of employee error, theft or dishonesty.  This makes it possible for investors to recoup their losses even if employees make grave errors with regards to the investment capital, or if employees steal from the funds.

Who needs Fund Managers Insurance?

Any company that is responsible for managing the financial assets of individuals or companies should have Fund Managers insurance especially brokerages, banks, investment corporations etc.

Why should you take out Fund Managers Insurance?

In an ideal world, everyone would follow procedures and would certainly never embezzle funds for themselves.  This of course is hardly the real world case.  Mistakes do happen, and even the most trust worthy employees can succumb to the temptation to skim money for themselves.  With fund managers insurance to protect the fund, the company can recoup their losses, work through the issue and continue to operate no matter what internal problems arise.  Without fund managers insurance, the investor is at risk of having his precious savings depleted by the company holding his investments.

How much does Fund Managers Insurance cost?

It depends on the size of your fund, the number of your employees and the limit of cover you require.

Typical claims incurred on Fund Managers Insurance policies.

Finger trouble accounts for most of the claims on these types of policies, with payments of incorrect amounts or to incorrect beneficiaries being made.  Administration errors and non-compliance with duties are also leading causes of claims. 

Theft and fraud from funds is a sad reality and can amount to staggering losses to the fund if not insured against.

What other insurance should be considered along with Fund Managers Insurance?

This is a very specialised and comprehensive type of insurance, catering for almost all scenarios which could go wrong internally with a fund administrator.  However, we would also recommend that the physical assets of the company also be insured.

GET A QUOTATION:

Click here to send us an e-mail requesting a quote -> insurance@barrington.co.za 

We will e-mail you a quotation as soon as possible.

Contact details will be kept confidential and will not be used in any way other than as described above and will not be shared with any other parties.

Please note that we can only insure in South Africa.