Public Offering of Securities Insurance (POSI)

Increased shareholder litigation is fact of life for companies globally, particularly those with US exposures. With this increase in litigation there is a growing awareness of the responsibilities incumbent on directors and officers of companies. This is especially true when the company makes a public offer of its securities. Signatories of a public prospectus have a personal responsibility for its contents and could therefore be found personally liable for the losses fo securities holders arising from inaccuracies or misrepresentations within it. This policy covers insureds for securities claims arising from offerings of a company's securities.