investment insurance

Investment insurance is a type of protection that safeguards investors’ assets against certain risks, such as fraud, theft, or errors by financial institutions. It provides a safety net by compensating investors if their investments are lost or their accounts are mismanaged. For example, in the United States, the Securities Investor Protection Corporation (SIPC) protects securities accounts up to a specified limit if a brokerage fails. Unlike traditional insurance, which covers things like property damage, investment insurance focuses on protecting your financial assets in the investment world, helping to reduce the potential for significant financial loss in specific scenarios.