Public Offering of Securities Insurance
This policy is taken when the company makes a public offering of its securities. This increases market exposure and can lead to stakeholder litigation.Signatories of a public prospectus have a personal responsibility for its contents and could therefore be found personally liable for the losses of securities holders arising from misrepresentations within the prospectus. IPO Insurance (also known as Public Offering of Securities Insurance - POSI) addresses the uncertainties by ring-fencing securities exposures in a single premium, transaction-specific policy.
What Public Offering of Securities Insurance
Underwriter exposure from the Actual or alleged untrue or misleading statement or information from the Prospectus
Controlling and Selling Shareholder Liability from the Actual or alleged untrue or misleading statement or information from the Prospectus
Prospectus Liability
Defence Cost
POSI protects the insureds against securities claims arising from an offering of a company's securities.
POSI can also cover liabilities arising from negotiations, discussions and decisions in connection with the offering.
Cover includes punitive and exemplary damages.
Prior Claims and Known Circumstances.
Bodily Injury/Property damage
Dishonest/Fraudulent Act.
Major shareholder exclusion.
Things You
Probably Wonder
Public Offering of Securities Insurance (POSI) is a specialized insurance policy designed to protect companies, directors, officers, and other stakeholders against liabilities arising from public offerings, such as IPOs or private placements.
POSI typically covers risks such as misstatements or omissions in offering documents, shareholder claims, regulatory investigations, and liabilities related to securities offerings.
POSI is essential for companies planning to issue public securities, directors, officers, underwriters, and advisors involved in the offering process to protect against potential legal and financial claims.
Yes, POSI provides comprehensive coverage for liabilities arising from initial public offerings (IPOs), ensuring that companies and stakeholders are protected against claims during the offering process.
POSI protects your organization from financial losses due to legal claims, builds investor confidence, ensures compliance with regulations, and provides peace of mind during securities offerings.
The cost of POSI depends on factors such as the size of the offering, the company's financial health, the industry, coverage limits, and the jurisdictions involved in the offering.
Yes, POSI typically provides coverage for key stakeholders, including the company, its directors, officers, underwriters, selling shareholders, and advisors involved in the securities offering.
To choose the right POSI policy, assess your organization's specific risks, consult with Mitigata, and ensure the policy offers tailored coverage for your securities offering needs.