Prospectus Liability Insurance

This cover is suited to companies that are raising capital or debt, involving the issue of a prospectus.

The prospectus liability policy offers significant benefits including;

• Three insuring clauses providing cover to the Company and the insured persons against loss suffered by reason of any securities claims;
• the insured persons are covered for loss as a result of securities claims made against them personally (except where they are entitled to an indemnity from the company);
• the company is covered for the costs of reimbursing an insured person by reason of any indemnity relating to a Securities Claim and furthermore is covered for loss suffered as a result of securities claims made directly against it.

Cover is applicable to prospectuses, Initial Public Offerings (IPO), debt raisings, information memorandums, investment statements and more.  It is available to the underwriters of a deal.

In market conditions where shareholders are more frequently willing to challenge the governance of a company, this policy provides valuable cover against claims of this nature. Significant benefits include:

• Worldwide Cover   - Cover is available on a worldwide basis, including against US and European Exposures;
• No Insured v Insured Exclusion - Prospectus Liability Insurance cover claims made by the company or its directors against those parties insured under agreement;
• Legal Advisory Panel - The Legal Advisory Panel is a selection of professional firms who have been handpicked for their expertise in the areas of corporate governance, securities and insurance law and crisis management. The panel member firms are available to provide free legal advice on policy-related matters to insured parties. They are also offer an annual seminar on topics of relevance. The panel firms are pre-approved by Chartis to act on behalf of insured parties in respect of claims under the policy. Access to the panel is via the member firm's designated contact;
• Cover for Estates, Heirs and Legal Representatives - Cover under the policy is extended to the estate, heir or legal representatives of an insured person arising out of a claim against those persons resulting directly from a Securities Claim against the Insured which is covered under the policy;
• Cover for Spousal Property - Cover is extended to the lawful spouse of an insured person to protect his or her property in connection with a securities claim against the insured.

You can be sure that you have a dedicated partner in Chartis.  We are focused in answering your insurance needs today and anticipating tomorrow’s.  We aim for each client relationship to be a true partnership and will take on your challenges as if they were our own. 
By meeting straightforward needs as well as solving complex issues, we make your confidence our number one priority. 

Chartis is a world leading property-casualty and general insurance organisation serving more than 70 million clients in over 160 countries and jurisdictions. With a 90-year history, one of the industry's most extensive ranges of products and services, deep claims expertise and excellent financial strength, Chartis enables its commercial and personal insurance clients alike to manage virtually any risk with confidence.