Safeguarding IPOs, Directors & Stakeholders with POSI Insurance.
Public Offering & Securities Insurance (POSI) is intended to limit risks associated with IPOs, FPOs, private placements, and other securities offerings. It safeguards companies, directors, promoters, and underwriters against financial losses stemming from misstatements, omissions, or regulatory investigations.
Protection against civil liabilities from offering documents
Optional add-ons: Directors’ & Officers’ liabilities, errors & omissions
Coverage for regulatory investigations and fines (as per policy terms)
Coverage period aligned with offering and post-offering liability window
Frequently Asked
Questions
What is POSI?
Insurance protecting companies, directors, and underwriters against claims from public offerings.
Who needs POSI?
Companies doing IPOs, FPOs, rights issues, private placements; directors and underwriters involved.
Does POSI cover regulatory investigations?
Yes, subject to policy terms and limits.
Is POSI mandatory?
No. It is optional but highly recommended for mitigating financial and reputational risk.
How is coverage limit determined?
Based on offering size, risk exposure, and potential claim amounts.
Does it protect promoters and directors personally?
Yes, personal liability can be included as part of the coverage.
Can banks and underwriters take separate POSI?
Yes, separate policies are often structured for underwriters’ liability.
What is the policy period?
Typically covers the offering process and a defined post-offering period (tail coverage)
