Crystal Asset announced that it has obtained an insurance policy against the loss of its client assets. Crystal Asset’s experienced investment team manages over $220 million in client-invested capital assets globally, monitoring investments in line with the institutional lending strategy for solid trading and exceptional returns.
The new insurance policy is designed to recognize the evolution in products and services investment advisers offer to their clients and recognize the increasingly volatile investment environment.
The new insurance policy will provide coverage for professionals or businesses in the event that they make mistakes or fail to fulfill their obligations, resulting in financial losses for their clients. Insurance will help mitigate the financial risks associated with potential errors, omissions, or negligence that may result in the loss of clients’ assets.
Obtaining an insurance policy against the loss of clients’ assets typically falls under the category of professional liability insurance or errors and omissions (E&O) insurance. By transferring some of the financial liability to an insurance company, the company will protect its own assets and minimize the impact of potential claims.
Without an insurance policy, the company will remain exposed to liquidity that can unexpectedly arise due to market crashes, mismanagement, or a challenging operating environment. In the event of a claim, insurance coverage will help cover the costs of legal defense, settlements, or judgments. Without insurance, a significant loss could have severe financial implications for a company, potentially jeopardizing its operations, reputation, and undermining the sustainability of the company.
In addition, providing Standard and Dynamic accounts gives clients different preferences and amounts of capital to invest, allowing Crystal Asset to attract and retain both low-income and high-come investors and maximize its returns. The initiative will be a source of competitive advantage for the firm, given that clients often expect the companies or professionals they work with to have insurance coverage.
Usually, insurance offers reassurance that the company is financially prepared to handle any losses or damages that may occur due to errors or omissions. Having professional liability insurance will, therefore, be a differentiating factor when competing for clients or contracts, since it demonstrates the company’s commitment to quality, professionalism, and financial protection. The new policy will enhance the firm reputation and attract clients who prioritize risk mitigation.