Public Offering of Securities Insurance (POSI)
Offering securities to the public can create significant new exposures, including greater scrutiny by regulators and heightened exposure to regulatory investigations.
When pursuing an offering, companies should review the suitability of their directors and officers (D&O) liability insurance programme, and consider a Public Offering of Securities Insurance (POSI) policy to ring-fence any liabilities that may arise out of the transaction.
A POSI policy offers bespoke cover for public offerings including initial public offerings and debt or equity rights issues. It specifically responds to the risks associated with the offering faced not only by directors, but also by the company and any controlling or selling shareholders.
Most importantly, a POSI policy operates to ring-fence the transaction exposure, leaving the D&O policy to respond to “business as usual” risks faced by the directors.
When undertaking a public offering, many organisations purchase a POSI policy alongside their existing D&O policy.
Marsh POSI provides extremely broad coverage, with only three limited exclusions. For more information please download our brochure or contact a member of our team.