Alpha By Chubb
Chubb Specialty Insurance



The business of managing investments is riskier and more complex than ever. Investment managers face an unprecedented array of potential professional and management liability exposures, any of which can result in devastating litigation, regulatory proceedings or a written demand by a dissatisfied client. Even if an investment manager does nothing wrong, defence and settlement costs can escalate to millions of dollars and result in immeasurable damage to an investment manager’s reputation and bottom line. The recent regulatory requirements imposed on AFS licensees to hold a certain level of professional liability insurance have also meant closer scrutiny of an investment manager’s insurance.

The solution: Alpha by Chubb

Alpha by Chubb is a specialised package policy specifically designed for a variety of investment managers. The Policy comprises three specifically designed coverage sections:

  • Professional Liability Insurance
  • Directors and Officers Liability Insurance, and
  • Crime Insurance

What makes it unique?

The Policy is designed to address the particular exposures of an investment manager.

The Policy is flexible by design to address an individual manager’s business model and insurance needs. It recognises the dynamic nature of investment managers and is intentionally drafted to minimise the need for ongoing negotiation during the policy period. Standard cover includes all existing funds and mandates and also automatically provides cover for any additional ones.

Investment managers can select between the coverage sections they require and the structure of the policy limits depending on what they are looking to achieve; whether it be addressing the minimum regulatory requirements or implementing a comprehensive risk management solution.

Who is it for?

Alpha by Chubb is appropriate for the full array of retail and wholesale investment managers operating in the following asset classes:

  • Equities
  • Property
  • Alternative Investments
  • Diversified
  • Hedge
  • Superannuation
  • Infrastructure

What does it insure?

Alpha by Chubb offers coverage features that address many of the most important professional liability and directors and officers exposures faced by investment managers and investment funds such as:

  • Breaches of investment mandates
  • Trading errors resulting in loss to investors
  • Inappropriate asset allocation, investment advice or product design
  • Allegations of failure to perform due diligence in the selection and oversight of outside service providers
  • Nondisclosure in offering documents or ongoing reporting requirements
  • Client losses resulting from theft from funds by an employee
  • Administration errors such as unit pricing, calculation of investor returns, or statements of member benefits
  • Fee based disputes
  • Formal regulatory investigations