Investment and asset management firms face a range of risks that can impact investment performance, disrupt operations, and damage reputation, including:

• Investment and market risk – market volatility or poor investment decisions affecting investment portfolios.

• Operational risk – technology failures, fraud, or process errors disrupting business.

• Regulatory and compliance risk – breaches of laws or industry rules.

• Cybersecurity and technology risk – data breaches, ransomware, business email compromise, system outages, hacking, and loss of sensitive client information.

• Reputational risk – events or allegations that erode trust with investors, employees, clients, and counterparties.

• Third-party/vendor risk – exposure arising from outsourced functions such as fund administration, custody, technology services, or compliance where failures impact operations or investment portfolios.

• Litigation and claim risk – legal actions from clients, investors, regulators, competitors, employees or counterparties alleging breach of duty, misrepresentations, negligence, or wrongful acts.

• People and workplace risk – employee misconduct, harassment, discrimination, whistleblower actions, health & safety issues – all of which can trigger legal exposure and reputation damage.

Asset management insurance and proactive risk management help firms mitigate these risks and protect both their business and clients.

Yes. investment and asset management firms face a distinct and evolving set of risks that require tailored insurance protection. From regulatory scrutiny and fiduciary duties to cyber threats and operational exposures, specialized coverage is essential to safeguard both your firm and your clients.

Depending on your firm’s structure, investment strategies, and risk tolerance, the decision to transfer or retain risk will vary. In many cases, the need for insurance is also influenced by investor and/or client requirements, board oversight, and regulatory expectations.

A comprehensive insurance program for asset managers typically includes a combination of coverages such as directors and officers (D&O) liability, professional liability (E&O), fund liability, crime, cyber, fiduciary liability, and employment practices liability.

Investment and asset management firms operate in a highly regulated environment where leadership decisions are subject to constant scrutiny from investors, regulators, and other stakeholders. D&O liability insurance provides critical protection for both the firm and its senior executives, covering defense costs and potential settlements arising from allegations of mismanagement, breach of duty, or regulatory violations.

Beyond financial protection, D&O coverage is a key component of sound governance, it helps firms attract and retain experienced directors and executives by providing confidence that their personal assets are safeguarded when acting in the best interests of the firm and its clients.

Every investment and asset management firm has a distinct risk profile shaped by its investment strategies, client base, regulatory environment, and operational structure. There’s no single insurance solution that fits all firms. A well-designed program should be tailored to protect your people, governance, and balance sheet while supporting your fiduciary responsibilities.

At Lockton, we work closely with asset managers across the spectrum to identify and manage both current and emerging risks. Depending on your firm’s needs, coverages to consider may include:

• Directors, officers, and general partners liability

• Errors & omissions (professional liability)

• Crime and financial institution Bonds

• Cyber and technology errors & omissions

• Pension trust/fiduciary liability

• Employment practices liability

• Fund management and professional liability

• Property & casualty

• Special risk

• Transaction liability

• Surety bonds

• Digital asset protection

• Employee benefits

• Excess SIPC protection

• Credit insurance

• Master trust property and liability

A comprehensive insurance strategy ensures your firm is protected from both operational and strategic risks, allowing leadership to stay focused on investment performance and client success.