The special insurance for the trading floor
In Germany, prospectus liability insurance for capital market measures subject to stock exchange listing has experienced enormous growth in recent years due to tightening of the law and exposed claims.
D&O insurance does not provide sufficient protection!
Too often, managers of listed companies have relied on their D&O insurance in this context. However, particularly for securities issues, a D&O insurance policy cannot cover all risks and definitely has to be adjusted when going public.
A securities offering may take the form of debt or equity financing. Expanding the investor protection goes hand in hand with stricter regulation and a higher liability risk. The statutory liability standards are almost identical for all forms of financing with the requirement to publish a prospectus. The starting point is always incorrect or incomplete information in the securities prospectus.
Finlex – Your IPO Powerhouse
Prospectus liability insurance is a special insurance tailored to the individual case.
Whether an IPO, secondary placement, capital increase, or bond issue, considering the interests of all parties involved is the decisive factor in placing the associated risk. An experienced broker has to support this complex process in order to achieve the best possible result.
We have the experience from numerous transactions, "stress tested" special concepts, and an international network.
POSI
By default, insurance coverage is provided for incorrect or incomplete information in the prospectus. However, we can also insure preparatory actions as well as addressing investors in the context of roadshows.
The Company takes out POSI insurance and, as the issuer, insures not only its own liability risk but also that of its management. If desired, other significant parties involved in the issue, such as syndicate banks, can also be insured.
The POSI is a project policy. As a rule, the sums insured are around 10-50% of the issue volume. However, in general, the sum insured can be selected freely. It is then available once for the entire term.
