Prospectors Offering Securities Insurance

Cover for companies enabling them to ring-fence the significant and long-term exposure presented by securities offerings

The object of this cover is to give companies the opportunity to ring-fence the significant and long-term exposure presented by securities offerings. It is a standalone, transaction specific policy focused on providing a tailored solution and protecting the traditional directors and officers policy limits to respond to ongoing matters.  

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

Features and Benefits

  • Up to 6 years of coverage, in line with most statutory limitation periods.
  • Focused coverage for a broad range of liabilities.
  • Applicable to Offerings on any non-US stock exchange.
  • Blanket coverage for securities sold pursuant to rule 144A of the Securities Act of 1933. Other SEC-related exposures can be covered subject to underwriting.
  • Covers liabilities arising from negotiations and decisions made in connection with the Offering, including any statements made by any Insured during Road Shows.
  • Preserves the insured persons right to indemnity.
  • Covers public relations consultant fees required to mitigate reputational injury.
  • Cover can be extended to include the issue underwriters as insureds, as well as other parties such as attorneys and accountants who are involved in the preparing of the prospectus.

What is covered?

  • Liabilities relating to the prospectus/listing particulars.
  • Liabilities relating to prior negotiations, discussions and decisions in connection with the offering.
  • US and non US exposures, including SEC registered listings, on all JSE or other world stock exchanges.
  • Punitive and exemplary damages cover.

Prospectus Offering Securities Insurance policies are short-term products and are underwritten by AIG South Africa Limited, FSP No: 15805