IPO Protector

What is IPO Protector Insurance?

This is a standalone policy that serves to protect companies, directors, and officers who undertake an initial public offering or a private placement of securities against claims for loss or damage by investors. It provides cover for any error or omission in a prospectus, offers information statement or profile statement resulting in civil, regulatory or administrative proceedings including investigations by government and/or authorities and shareholder suits. It protects against damages awarded against, settlements negotiated with an insured, including costs of defending such suits, legal costs and expenses awarded.
 
Who needs it?

The issuing organization, its directors and officers involved in any initial public offering or private placement are at risk, and should be protected. In addition the policy offers protection from claims lodged against other employees of the company, as well as selling shareholders.