Initial Public Offering (IPO)-insurance
A number of liability risks arise with the IPO of a financial institution, but also with the additional issuance of shares. There can be a mistake in the prospectus, you may have given a warranty you are forced to honor, there was mismanagement, or incorrect information was dispersed during the road shows. In the worst case the resulting claims can jeopardize the continuity of your enterprise. You can insure yourself against these risks with the Initial Public Offering (IPO) insurance.
The risks are the greatest during the first years after an IPO. The IPO insurance is consequently a multi-year contract. You can choose between a term of 3 to 6 years. During that time most of the liability risks that can arise out of an IPO are covered, even in cases of fraud or the presentation of financial data that violates the accounting rules.
The IPO insurance does not only cover the liability risks, the policy also contains coverage for defense costs and costs you will have to incur to repair the damage to your reputation. You can opt to cover all parties who are exposed to risks in an IPO, like the issuing corporation, the directors and officers and policy-making officers. Consequently, you can also insure the selling shareholders, the lawyer and other experts, like accountants.
Aon ensures that the policy fits the specific situation of your company. Together with you a comprehensive analysis of your organization and your risks will be performed, after which Financial Institutions Benelux looks for the best insurance solutions. You will obtain your own team of specialists who have the necessary competence to determine what your company needs in light of the planned IPO.