By Janardhan N 
Top 5 Public Offering of Securities Insurance Companies
So far in 2025, India’s IPO market has retained its position as the second-largest market globally.
With more companies looking to go public, the opportunity for growth is immense. As the IPO market stabilizes, the Indian stock market remains a hub for investment opportunities.
However, one critical decision many overlook is securing the Public Offering of Securities Insurance (POSI). While going public can drive growth, it also brings risks.
Without POSI, businesses expose themselves to possible legal action, monetary losses, and reputational harm.
Errors in the IPO documentation or shareholder conflicts may give rise to claims, and failing to manage them effectively without insurance can be very expensive.
If you’re looking for the right IPO insurance provider in India, we’ve got you covered.
What happens if an investor discovers, after the initial public offering (IPO), that the prospectus contained inaccurate information? Somebody might have underestimated the revenue estimate or a legal risk.
Here’s where IPO insurance comes in. Unlike general insurance, which may cover a wide range of issues, IPO insurance is specifically designed to cover securities-related risks associated with the IPO process.
Top 5 Public Offering of Securities Insurance Providers
Take a look at India’s most recommended POSI insurance providers list along with detailed information about their features and more.
1 . Mitigata- Smart Cyber Insurance & Security Partner
Mitigata offers a unique advantage by helping you navigate the often complex and time-consuming process of selecting the right POSI coverage. As a trusted broker, we connect businesses with the best providers in the market, offering competitive rates and tailored solutions.
Key Features include:
- Expert evaluation of your needs to match you with the ideal POSI provider
- Best competitive rates for POSI coverage from top insurers in the country
- Make the entire process hassle-free and efficient for your business
- Trusted partner in ensuring long-term security with the right POSI coverage
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2. HDFC ERGO
The Public Offering of Securities Insurance (POSI) of HDFC ERGO covers the company, its directors, and officers from liability associated with the public offering of securities. Their POSI plan can be customized to provide 10 years coverage to businesses, ensuring long-term stability.
Key features include:
- Protection from misleading or untrue statements in the prospectus.
- Coverage for underwriters against liabilities from offering documents.
- Defense costs for legal representation and formal investigations.
- Liability coverage for selling and controlling shareholders.
- Provides coverage for claims of spouses and representatives.
3 . Bajaj Allianz
Bajaj Allianz Public Offering of Securities Insurance (POSI) provides specialized protection for businesses and key stakeholders during securities offerings. Thier POSI insurance policy covers all potential liabilities, defense costs, and legal expenses, providing financial and legal security throughout the offering process.
Key features include:
- Covers losses from public offering claims indemnified by the issuer.
- Pays for costs related to public offering inquiries.
- Additional coverage for non-executive directors with no other indemnification.
- Retrospective approval for emergency defense and inquiry costs.
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4.TATA AIG
Tata AIG Public Offering of Securities Insurance (POSI) protects businesses and their important stakeholders, including directors, executives, and shareholders, during securities offerings such as IPOs. Their policy serves to shield the company and its executives from legal proceedings that may arise long after the acquisition is complete.
Key features include:
- Coverage for directors and officers against misrepresentations in the prospectus.
- Protection for the issuer against public offering claims.
- Safeguards directors and officers from personal liability due to securities-related claims.
- Covers legal costs and defense expenses related to securities claims and investor actions.
5. ICICI Lombard
The Public Offering of Securities Insurance (POSI) from ICICI Lombard offers essential protection for companies, executives, directors, and shareholders during securities offerings such as initial public offerings (IPOs). The policy protects everyone involved in the securities offering process by shielding the business and its stakeholders from potential legal claims that may surface after the offering is finished.
Key features include:
- Coverage for legal liabilities from misrepresentations or omissions in the prospectus.
- Protection for the issuer against public offering claims.
- Shield for directors and officers from personal liability due to securities claims.
- Coverage for legal costs and defense expenses related to securities claims.
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Conclusion
So far, you’ve seen the importance of IPO insurance and the top 5 POSI providers in India. If you’re still confused about obtaining POSI, keep in mind that India’s IPO market is expected to reach a value of US$5.67 billion by 2025, underscoring the increasing demand for IPO insurance to protect against liabilities from public offerings.
It is essential to have the right coverage plan to prevent expensive surprises throughout the offering process.
Contact Mitigata to help you find the best IPO insurance policy for your needs.
To learn more about POSI, click here to schedule a free consultation with our team.
FAQS on Public Offering of Securities Insurance Companies
Q1. What is an example of a public offering?
An example of a public offering is when a company decides to sell its shares to the public through an Initial Public Offering (IPO). The company registers its securities with regulators and offers them to investors for the first time on the open market. This process allows companies to raise capital for growth while providing investment opportunities for the public.
Q2. What is the public offering of securities insurance?
Public Offering of Securities Insurance (POSI) is an insurance policy that protects companies and key stakeholders during the securities offering process. It covers liabilities arising from misstatements or omissions in the prospectus, and shields directors, officers, and underwriters from potential lawsuits tied to securities claims.
Q3. What is IPO insurance?
IPO insurance, also known as POSI insurance, protects companies going public through an IPO from the risks associated with the offering of their securities. This insurance covers claims related to misleading statements or errors in the prospectus and provides coverage for defense costs and other liabilities that may arise during or after the offering process.
Q4. What Does a POSI Policy Cover?
A POSI policy covers a company and its stakeholders during a public offering of securities. It protects against prospectus liability for misleading statements, covering the company and its officers. It also provides underwriter exposure protection and covers defense costs for legal representation. Additionally, the policy safeguards selling and controlling shareholders from liabilities related to misleading information in the offering documents.
Q5. Who Needs POSI?
POSI is essential for any company making a public offering of securities, such as through an IPO, FPO, or debt securities. It provides insurance coverage for directors, officers, shareholders, and underwriters, protecting them from liabilities arising from misstatements or errors in the prospectus.
Q6. What is the Public Offering Investment Company Act?
In India, the SEBI (Securities and Exchange Board of India) regulates public offerings through the SEBI (Issue of Capital and Disclosure Requirements) Regulations. These regulations ensure transparency and protect investors by requiring accurate disclosure of information in the prospectus during the IPO or other securities offerings.
Q7. What is the difference between public and private securities?
Public securities are financial instruments, such as stocks or bonds, that are offered to the general public through a public offering (like an IPO). Private securities, on the other hand, are not available to the general public and are typically sold to a limited group of investors through private placements. They are not listed on public exchanges and have fewer disclosure requirements compared to public securities.