Prospectus Liability Insurance

Insurance for organisations looking to list on a stock exchange.

When a company decides to go public and list on a stock exchange, there are numerous processes they need to go through. Issuing a prospectus to the public, in which an informed decision on investing may be made on, can lead to significant issues around disclosure, especially if the company does not perform as well as expected upon listing.

The raising of capital via a prospectus can either be covered off in two ways:

  • Under an annual D&O policy with coverage tied in for the actual prospectus document (usually for small raisings).
  • Under a standalone multiyear prospectus liability policy that sits separately from the annual D&O Insurance and hence ring-fences the prospectus exposure (usually for larger raisings).

Austbrokers Professional Services has extensive experience in working with our insurance partners and clients who are making the transformation from a private entity to a public entity traded on the stock exchange.