Investment Insurance

Protecting Assets from Fraud & Embezzlement

Capital Shield is the first and only insurance product of its kind covering the invested assets by investment advisors and asset managers. High-net-worth individuals have the ability to buy insurance to cover almost everything of value in their lives. They transfer risk to an insurance carrier for many types of assets they own, however, until now, there has not been an option to insure their money/invested assets in the event their investment advisor/asset manager embezzles their money. 

 

News

Department of Justice - https://www.justice.gov/usao-sdny/pr/former-president-investment-adviser-firm-sentenced-and-former-comptroller-charged

Department of Justice - Shreveport investment advisor pleads guilty to bilking clients out of $3.5 million 

Department of Justice - Hedge Fund Founder, CEO, And CIO Anilesh Ahuja And Former Trader Jeremy Shor Convicted Of Securities Fraud Related Offenses In Manhattan Federal Court

Department of Justice - Investment Adviser Sentenced to 70 Months in Prison for Stealing Millions of Dollars from Clients

 

MARKET OVERVIEW

Coverage Parameters

The policy covers high-net-worth individuals’ invested assets when their investment advisor/asset manager embezzles their funds. The investment advisor/asset manager must be listed as a “Named Person” on the policy. An individual can purchase an aggregate limit of insurance up to $10M with a minimum deductible of $50K per occurrence. Premium is $1,500 per $1M increment. 

In the event of a covered loss, the policy will pay at the time the perpetrator is indicted. 

Insurer(s)

Berkley FinSecure 

Commission Schedule

Highly Competitive Commissions

Application Requirements

Complete MarketScout Producer Agreement 

Applications
Title View/Download
Capital Shield Insurance Application Capital Shield Insurance Application

FAQs

1Who should own a Capital Shield policy?
Anyone with invested assets over $1,000,000 looking for “peace of mind” knowing their finances are protected for themselves and their family for years to come.
2In the event a high net worth (HNW) investor’s assets are embezzled by their asset manager, what would they do to recover their money?
Hire a lawyer? Sue the asset manager and the firm they work for? These are commitments the investor would have to deal with, and the process could be lengthy and expensive. This risk is currently assumed (likely unknowingly) by the high net-worth HNW individual. What if you could transfer part or all of this risk through an insurance product? How much would that piece of mind be worth to you and your family?
3Could a HNW individual afford to continue living the lifestyle they are accustomed to if a portion or all of their invested assets were embezzled?
According to the Federal Reserve, Bureau of Labor Statistics and Census Bureau, the share of retirees who are millionaires doubled over the last three decades, now accounting for 1 in 6 retirees. Most are past their peak earning years and rely on their investments to live their lifestyle in retirement.
4Don’t I already have embezzlement insurance through my Homeowners or Umbrella Liability policy?
No you don’t. All criminal acts are excluded from most standard insurance policies. For many years this has been a large gap in completing an individual’s comprehensive insurance program. Capital Shield is the first and only insurance product of its kind covering embezzlement by an investment advisor/asset manager.