Investment banking errors and omissions (E&O) liability insurance is part of a suite of insurance products offered by Marsh’s FINPRO Practice to assist our financial institutions (FI) clients in addressing and managing the unique exposures present in today’s business environment.

Investment banks provide a wide range of services on behalf of their clients. Frequently these include making significant representations to third parties in the attempt to raise capital, facilitating mergers or acquisitions, or rendering other related services. This can lead to significant liability simply because of the complexity and size of these transactions, whether or not any malfeasance actually occurred. Investment banks that serve middle-market, growth, and municipal entities are finding themselves targets in litigation proceedings with increasing frequency.

The policy will pay on behalf of the insured for loss resulting from any claim first made during the policy period for a wrongful act in the performance of or failure to perform professional services, subject to policy terms and conditions. Marsh works closely with underwriters to tailor the policy to provide coverage for your company’s specific exposures.

Investment banking activities and claims areas include the following:


  • Mergers and Acquisitions (M&A) Advisory
  • Rendering of Fairness Opinions
  • Debt and Equity offerings
  • Securities Fraud
  • Auction Rate Securities
  • Collateralized Debt Obligations
  • Mergers and Acquisitions (M&A) Advisory

Investment Advisory

  • Failure to Disclose Risks
  • Failure to Follow Guidelines
  • Breach of Fiduciary Duty
  • Failure to Disclose Risks

Prime Brokerage

  • Fraudulent Inducement
  • Breach of Trust
  • Failure to Monitor
  • Fraudulent Inducement

Pricing and Deductible

The annual premium and deductible will vary based on the risk profile of individual organization and the suite of services provided. Marsh's FI experts are experienced in working with our clients to differentiate their unique risks to carriers and aggressively negotiate competitive pricing and deductible options.  

Claims Advocacy Services

Marsh has an extensive network of claims advocates that offer valuable insight and guidance throughout the placement and claims process. Claims advocates add value with policy drafting and interpretation, research and commentary on emerging issues, as well as providing other claims services as needed. During the claims process, Marsh is able to assist with various tasks including the reporting of the loss to the insurer, selection of defense counsel, and the ongoing communication with the insurer. Claims advocates also track carrier responses and assist with policy analysis and other administrative tasks until the claim is resolved. Marsh’s claims database allows us to quickly access information such as developments in the underlying litigation trends against financial institutions that perform investment banking services.