Professional Indemnity Insurance (PI) is also known as Errors and Omissions Insurance (E&O), particularly in the USA. It provides civil liability coverage for claims made against an asset management company, its directors, partners and employees for the professional services provided by the firm to its clients. PI also provides for the provision of defence costs in the event of defending a claim.
This is a key area of coverage as it covers errors or omissions made in in the course of performance of asset management activities.
In addition, for those asset managers who deemed AIFM under the Alternative Investment Fund Management Directive are likely to be subject to the PI requirements which are enshrined within this directive.