Public Offering of Securities Insurance
Public Offering of Securities Insurance
If you are a movie buff, you might be willing to pay through the nose for the ticket. But would you be willing to spend so much money if the movie is super boring? You’ll look up the reviews and hear your friends’ feedback about the movie to decide whether to go or not. If the reviews are bad, a wise thinker will call off the movie program and go to a restaurant instead to have his favorite delicacy. Doing tremendous research before buying the right insurance is like reviewing a movie.
Raising capital via a public offering presents an array of risks for a company and its directors. POSI can bring peace of mind.
Public Offering of Securities, POSI in short, safeguards an Organization and its directors against liabilities that arise from the sale of the organization’s securities and listing on a Public Stock Exchange (PSE). POSI responds to the risks related to the offering faced by directors as well as the company, including any controlling or selling shareholders. It covers claims that arise from offerings and equity or debt issues (Initial or Secondary). Public Offering can create new exposures for a company and its decision-makers, considerably. On an offering, you have to keep in mind the potential liabilities and address the key risks.
There’s Increased Certainty
Creating marketing presentations and publishing an offer document before an organization’s securities pose the risk of litigation if the securities’ performance is not up to the expectation for the company and its directors.
Pliable Service
It is a famous saying that one size doesn’t fit all, you should follow a flexible strategy to the underwriting process.
When preparing for an offering, firms have to assess the compatibility of their directors and officers (D & O) Liability Insurance policy and consider a Public Offering of Securities Insurance (POSI) policy to protect any liabilities, arising from the transaction.
When undertaking a public offering, most companies buy organizations a POSI policy along with their existing D & O policy.
Some POSI policies offer a wide coverage, with only three limited exclusions.
What Are the Key Risks That an Offering might Bring?
A public offering of securities can result in a thorough inspection by regulators. Therefore, there is heightened exposure to regulatory investigations.
Post offering, investors might bring a claim after they have banked on a statement in your prospectus that the investor later considers to be false or misleading. Since there will be experienced advisers, the chance of a claim not being a failure against your company and its directors should be restricted. But the claim still requires defense, and this can incur considerable costs.
Will Your Company's Directors and Officers (D & O) Policy Respond?
Typically, a D & O Liability Insurance policy excludes coverage for public offerings or obliges the offering firm to pay an additional premium as a condition to cover. If the coverage is extended under the D & O policy for a transaction, it will usually be available only to the individual directors and officers and not the firm.
How to get the best policy
Find a specialized industrial insurance policy provider
You must deal with specialists. Since specialized insurance companies that deal with Public Offering of Securities Insurance can give you a comprehensive solution. You need to search for one skilled insurance service provider.
Run a comparison study
You can find several sites offering you information about the various insurance providers, their policies and reviews. By running a comparison study, you can easily find an insurance company that is right for your needs and requirements.
Seek professional help
It would be advisable to find professional help to understand the policy, because, at times, it can be too technical for you to understand, and a person who is expert in the insurance business can help you in spotting the right kind of policy for your business. The insurance expert can make you understand the legal terms associated with the policies.
Read the terms and conditions carefully
You should read the terms and conditions. For instance, you need to know about the social exclusions, the add-ons of the policy, and more. Hence, take out some time and read the terms and condition carefully before buying the insurance plan.
Never let the business be vulnerable to the unpredictability of nature and happenings. You can keep everything under control by availing the best Public Offering of Securities Insurance for your business and act with a sense of urgency when things go wrong without prior notice. So, stay safe.