Fund liability · Securities · Structured products
Cover for the financial-services side of digital-asset operations is its own class, with its own wordings and its own underwriters. Funds investing in digital assets, financial-services firms with treasury exposure, structured-product issuers operating digital-asset strategies — each sits inside the FI market, not the digital-asset crime market, and is placed against a different set of binders.
Perils
01
Insuring clause ·Cover responds to alleged breaches of the fund’s duties to investors arising from the management or administration of the fund — investment-strategy challenges, NAV disputes, valuation disputes, and certain regulatory enforcement matters.
Exclusions ·Excludes dishonest acts of insureds (separate Crime / fidelity wording), regulatory penalties where insurability is precluded, and certain enumerated investment classes.
02
Insuring clause ·Cover responds (where placed) to claims by investors alleging misrepresentation or omission in offering documents, marketing materials, or periodic disclosures. Particular attention paid to token offerings, SAFT and SAFE structures, and any disclosure made in relation to digital-asset products.
Exclusions ·Excludes matters arising from disclosure made outside the policy period and offerings excluded by the territory or activity schedule.
03
Insuring clause ·Cover responds to liability arising from the issuance and ongoing administration of structured products, including index-tracker, basket, and income-generating structures.
Exclusions ·Wordings vary materially between London FI markets and adjacent company-market capacity; specific structures and underlyings are read into or out of the schedule before placement.
04
Insuring clause ·Cover responds to claims arising from advisory activity, including discretionary investment management for digital-asset-exposed mandates. Often co-placed with the fund-vehicle liability binder for operational efficiency.
Exclusions ·Excludes claims arising from activity outside the declared scope of professional services and any unregulated activity not endorsed onto the schedule.
05
Insuring clause ·Cover responds (where placed) to certain treasury-operational losses arising from wire-transfer error, settlement error, and reconciliation failure.
Exclusions ·Sits at the boundary of Crime, FI professional liability, and cyber; structure depends on the operational architecture and may require co-ordinated binders across classes.
Underwriting
Fund structure. Legal entity, jurisdiction, vehicle type, fund administrator, depositary, investment manager, valuation policy, NAV cadence.
Investment strategy. Asset universe, leverage, derivatives use, digital-asset exposure (instruments, custody arrangements, counterparty list).
Investor base. Investor type (institutional / HNW / family office), AUM, concentration, lock-up, redemption mechanics.
Operational architecture. Custody, prime brokerage, settlement, reconciliation. Treasury controls. Wire-transfer authorisation matrix.
Regulatory posture. Investment-manager FCA permissions, fund jurisdiction, marketing posture under FPO (Art. 19 / 49 / 50A reliance).
Claims and complaints history. Material litigation, regulatory enforcement, investor complaints over the prior 36 months.
Use the RFI form to indicate your operating posture — same business day response from a named broker.
Carrier panel
Panel slot 01
Published on authorisation.
Panel slot 02
Published on authorisation.
Panel slot 03
Published on authorisation.
Panel slot 04
Published on authorisation.
Panel slot 05
Published on authorisation.
Panel slot 06
Published on authorisation.
Editorial reference · public-press third-party reporting
The London FI market — Lloyd’s and the adjacent company market — has consistently written professional-liability and fund-vehicle cover for digital-asset-exposed investment managers. We are in the coverholder application process at Lloyd’s for the relevant classes; the specific carriers we will place with are not represented on this page pre-approval. Public reporting indicates that Beazley, Hiscox 33, and Convex 1984 are among the Lloyd’s syndicates with cyber and FI consortium capacity that can wrap digital-asset risk. This reference is third-party editorial reporting, not a representation of a binder relationship.
Process
Enquiry
RFI form or direct email to a named broker. Same-business-day acknowledgement; named broker assigned within one business day.
Pre-qualification
Six-question Q-pack run jointly. Initial appetite read from the FI market. Typically 5-10 business days.
Submission
Underwriting submission drafted by znobia; reviewed with the client; sent to the target market. Typically 10-20 business days for fund-vehicle and structured-product risks.
Quote
Markets respond with indicative terms. We summarise quotes against the original risk and the buyer’s stated priorities — limit, retention, exclusions.
Bind
Client issues an instruction-to-bind. Binder issued by the carrier. Typically a further 5-10 business days post-quote.
Servicing
Endorsements, mid-term changes, claims notifications, renewal. Each handled by the same named broker as on placement.
Typical timeline: 6-14 weeks for fund-vehicle and structured-product placements; 4-10 weeks for adviser PI. Expedited paths available for renewal.
Related primers
Token classification under the FI market — what underwriters need to see
Forthcoming
Why your D&O may not respond to a digital-asset incident — coverage gap analysis
03 May 2026
znobia acts as an insurance intermediary. We do not underwrite risk. Cover, where available, is placed with authorised carriers and is subject to underwriter approval, policy terms, exclusions and conditions. Nothing on this site is investment, tax, legal or financial advice. Cover described on this page is illustrative. Availability, terms, limits, retentions, and pricing are determined by the underwriter and are subject to underwriter approval, policy terms, exclusions, and conditions.