Pembroke Syndicate 4000 has developed an endorsement for its Investment Management Insurance (IMI) policy offered by the Financial Institutions unit in London. Pembroke’s new endorsement will accompany the standard IMI policy wording to clarify and expand the scope of protection against cyber risks.
Pembroke’s IMI policy is designed to protect fund manager entities, investment funds and their directors against the risk of civil liability to third parties and also provides cover for fund manager entities and investment funds against the risk of loss due to a dishonest act committed against the fund manager entities by an employee or a third party.
The IMI endorsement affirms protection for allegations of civil liability with regard to publicity, security and privacy issues. Also, the endorsement offers coverage for reimbursement of expenses following a security breach, including the cost of notifying individuals whose private information may have been compromised.
Sukh Chana, divisional head of Financial Institutions, said the development of the IMI endorsement was driven by client concern over the expansion of data privacy obligations imposed by the new legislation. He added the financial institutions team in London anticipates increased demand for breach costs coverage now that the General Data Protection Regulation (GDPR) is in force.
Pembroke’s IMI endorsement is available for an additional premium. Policy limits of up to 15 million (USD/GBP/EUR) are available which may also form part of a larger program through a syndicated placement.
Pembroke’s IMI endorsement applies to fund manager entities and investment funds worldwide, excluding the U.S.
Financial Institutions programs are underwritten on behalf of Lloyd’s Pembroke Syndicate 4000. Pembroke’s Financial Institutions unit, based in London, offers insurance coverages for all financial institutions operating in a regulated financial regime, including banks, fund management, private equity and financial exchanges.
Ironshore, a Liberty Mutual company, provides broker-sourced specialty property and casualty insurance coverages for varying risks located throughout the world. Select specialty coverages are underwritten at Lloyd’s through Ironshore’s Pembroke Syndicate 4000.
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