Public Offering of Securities Insurance (POSI)

Protecting your company and its leaders during capital raising.

Public Offering of Securities Insurance (POSI) provides specialised protection for companies and their directors, officers, and employees involved in issuing securities – whether through an Initial Public Offering (IPO), secondary offering, bond issue, or private placement.

A public offering exposes a company and its management to heightened scrutiny from investors, regulators, and other stakeholders. POSI covers the costs of defending and settling claims arising from alleged misrepresentations, omissions, or breaches of duty made in the prospectus, disclosure documents, or during the offering process.

Unlike tradition D&O insurance, a POSI policy is a single-purchase product that is ring-fenced to a specific offering, ensuring that the cover and limits are dedicated solely to that transaction and remain in place for several years after completion.

Cover can be provided for exposures such as;

• Advancement of defence costs
• Civil and criminal liabilities arising from negotiations or decisions made in connection with the offering
• Pre-wrongful-act coverage for investigations
• Claims for misrepresentation in the lead-up to the offering (i.e. negotiations, decisions, discussions and presentations)
• Cover for initial prospectuses, including pathfinder documents
• Cover for any liability arising from warranties owned by the company or its directors made in the underwriting agreement
• Cover can be extended to include selling and/or controlling shareholders’ liabilities

Whether you’re listing for the first time or raising additional capital, Public Offering of Securities Insurance provides peace of mind for your company, its board, and all parties involved – supporting a confident and compliant capital-raising process.