Overview:  Covers companies against securities claims arising from offerings of a company?s securities. The policy can cover equity or debt issues, both initial and secondary. Cover is for the company and its directors, officers, employees and selling shareholders.

Who is it for?:  All financial institutions involved in capital raising via issue of a prospectus. Protects: The issuer and its subsidiaries, their directors, officers, and employees, any controlling shareholders and any selling shareholders. Automatic cover for domestic partners, administrators and executors.

Increasing shareholder litigation is a growing fact of life for UK companies. With this increase in litigation comes a growing awareness of the responsibilities incumbent on the directors and officers of companies. This is especially true when the company makes a public offering of its securities. Signatories of a public prospectus have a personal responsibility for its contents and could therefore be found personally liable for the incurred losses of securities holders arising from misrepresentations within the prospectus.

Public Offering of Securities Insurance covers companies against securities claims arising from offerings of a company’s securities. The policy can cover equity or debt issues, both initial and secondary. Cover is for the company and its directors, officers, employees and selling shareholders. Additionally, the company’s and directors’ indemnity to the underwriters under warranties in the underwriting agreement are covered.

Public Offering of Securities Insurance gives companies the opportunity to ring-fence the significant and long-term exposure presented by securities offerings. Although some cover can be available under an ongoing D&O policy, we recommend a stand alone, transaction-specific product to ensure suitable coverage and to protect the existing D&O contracts from a claim.

The policy is a once-only purchase with a validity of six years to coincide with the statutory limitation period for bringing claims.