Financial Institutions Liability

Flexible, modern management and professional liability coverage designed for financial institutions as they navigate evolving regulations, rising customer expectations, and the growing role of AI and digital banking in financial services.

A look at the numbers

53,753

Tips, complaints, and referrals the SEC received in fiscal year 2025.*

85%

Of financial advisors have adopted some form of AI in their practices.**

$29.6T

In gross private fund assets reported on Form PF in Q4 2025, up 18.5% year over year.†

*SEC Enforcement Results for Fiscal Year 2025 (2026) **AssetMark 2026 Advisor Insights: AI Report (2026) †SEC Private Fund Statistics (2025)

Built for financial institutions

Financial institutions use Counterpart's insurance products and risk management services to manage risk across their lines of business.

Investment Advisers

Example

Investment Advisers

State:

IL

Limit:

$2M

Retention:

$100,000

Premium:

$22,000

Private Equity

Example

Private Equity

State:

TX

Limit:

$3M

Retention:

$150,000

Premium:

$45,000

Hedge Funds

Example

Hedge Funds

State:

NY

Limit:

$2M

Retention:

$150,000

Premium:

$30,000

Venture Capital

Example

Venture Capital

State:

CA

Limit:

$1M

Retention:

$100,000

Premium:

$12,000

Financial Planners

Example

Financial Planners

State:

GA

Limit:

$2M

Retention:

$100,000

Premium:

$26,000

Real Estate Funds

Example

Real Estate Funds

State:

TN

Limit:

$1M

Retention:

$100,000

Premium:

$14,000

Financial Technology

Example

Financial Technology

State:

CA

Limit:

$2M

Retention:

$150,000

Premium:

$29,000

Broad appetite

Financial institutions across all 50 states

State:

Limit:

Retention:

Premium:

What is covered?

Modular Coverage

Directors and Officers Liability, Professional Liability, Private Fund, Employment Practices Liability, and Fiduciary Liability

Coverage for Financial Institutions

Primary and excess limits up to $5,000,000

Derivative Demand Investigation Costs

Legal and expert costs of investigating and responding to a security holder demand to investigate for alleged wrongdoing by management

Inquiry Costs

Costs of responding to a regulator’s written request for an interview or documents, prior to a formal claim

Non-Indemnifiable Additional Limit

An additional limit, on top of the policy aggregate, that sits excess of Insured Person Liability

Crisis Costs Coverage

Cost of a crisis consultant when unfavorable information is published in regards to an insured entity

+ Much more

And dozens of other coverages that are designed to help financial institutions manage their liability

Download our full coverage & appetite guide

Claims Examples

Regulatory Investigation: SEC Review of an RIA’s Fee and Compensation Disclosures

Cost: $150,000–$600,000

Time to resolve:

12-24 months

Example

The SEC opened an investigation into a registered investment adviser in regards to how it disclosed conflicts of interest tied to compensation its affiliated broker-dealer received for trade execution and account services. Counsel was retained to respond to subpoenas, produce documents, and prepare for Wells submissions, if any. The matter settled with a cease-and-desist order and a civil penalty.

Strategy Deviation Claim Against Private Equity General Partner

Cost: $500,000–$1,500,000

Time to resolve:

18-24 months

Example

Limited partners in a private equity fund sued the general partner, alleging the fund deviated from its stated investment strategy and the portfolio was not managed with reasonable care. They claimed this was negligent and breached the partnership agreement. The case settled in mediation before trial.

Portfolio Company Bankruptcy: Creditor Claim Against Fund-Appointed Directors

Cost: $250,000–$1,000,000

Time to resolve:

28-32 months

Example

After a portfolio company filed for bankruptcy, the creditors’ trustee sued the private equity firm and the directors it had placed on the company’s board. The trustee alleged that a dividend recapitalization paid to the fund left the company insolvent. The case settled after the court ruled on early motions.

Regulatory Investigation: SEC Review of an RIA’s Fee and Compensation Disclosures

Cost: $150,000–$600,000

Time to resolve:

12-24 months

Example

The SEC opened an investigation into a registered investment adviser in regards to how it disclosed conflicts of interest tied to compensation its affiliated broker-dealer received for trade execution and account services. Counsel was retained to respond to subpoenas, produce documents, and prepare for Wells submissions, if any. The matter settled with a cease-and-desist order and a civil penalty.

Strategy Deviation Claim Against Private Equity General Partner

Cost: $500,000–$1,500,000

Time to resolve:

18-24 months

Example

Limited partners in a private equity fund sued the general partner, alleging the fund deviated from its stated investment strategy and the portfolio was not managed with reasonable care. They claimed this was negligent and breached the partnership agreement. The case settled in mediation before trial.

Portfolio Company Bankruptcy: Creditor Claim Against Fund-Appointed Directors

Cost: $250,000–$1,000,000

Time to resolve:

28-32 months

Example

After a portfolio company filed for bankruptcy, the creditors’ trustee sued the private equity firm and the directors it had placed on the company’s board. The trustee alleged that a dividend recapitalization paid to the fund left the company insolvent. The case settled after the court ruled on early motions.

Regulatory Investigation: SEC Review of an RIA’s Fee and Compensation Disclosures

Cost: $150,000–$600,000

Time to resolve:

12-24 months

Example

The SEC opened an investigation into a registered investment adviser in regards to how it disclosed conflicts of interest tied to compensation its affiliated broker-dealer received for trade execution and account services. Counsel was retained to respond to subpoenas, produce documents, and prepare for Wells submissions, if any. The matter settled with a cease-and-desist order and a civil penalty.

Each claim is unique and requires review of your policy terms and conditions to determine whether the claim is covered under your unique policy terms and conditions.

How we’re different

Others

Modular Forms

Quote multiple limits, retentions, and coverage options across all coverages

Others

AM Best rating of A XV (Excellent)*

Underwritten by industry leaders with one of the strongest credit ratings from AM Best

Others

?

Agentic Underwriting™

Get support from underwriters with over 120 years of collective experience

Others

?

Agentic Claims Management™

Our in-house experts resolve claims faster, reduce friction, and keep businesses moving forward

Others

?

Agentic Risk Mitigation™

Access HR experts, employment attorneys, and proactive risk management tools to address professional service issues before they become liabilities

Others

?

Multi-channel support

Get a quote in minutes, any where, and on any device via email, digital application, or API

Others

?

We’re behind you

Sean Gleason is the Director of Financial Institutions leading Counterpart’s coverage expansion into the space. With more than 15 years in insurance, including a prior role as Vice President of Underwriting, Sean has built his career around management liability, professional liability, and fund liability. He brings a sharp eye for the regulatory and legal nuances that shape how financial institutions risk plays out in practice. His experience informs coverage that wholesale brokers can tailor to the account in front of them, whether it’s an investment adviser, a private fund, or a hedge fund.

Sean Gleason

Director, Financial Institutions Liability

Other products

Professional & General Liability

Protect the company from professional mistakes and unmet agreements with comprehensive liability coverage.

Private Directors & Officers

Protect the company's assets and key management.

Woman standing in doorway with arms folded

Employment Practices Liability

Protect against employment-related lawsuits.

Small business owner with insurance confidently meeting with customers