Aon | Financial Services Group
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On April 9th, Winston & Strawn LLC hosted Achieving IPO Readiness: An Approach from Legal, Accounting, and Insurance in conjunction with professionals from Deloitte and Aon, sharing insights on the complexities of preparing for an Initial Public Offering (IPO).
Key insurance takeaways from the discussion:
- Early Preparation and Risk Management: Starting the IPO preparation process early by developing a robust risk management strategy that integrates various types of insurance, particularly D&O, is crucial to post-IPO success and risk management.
- Strategic Importance of D&O Insurance: Having D&O insurance in place is not only prudent but is also a strategic tool to attract and retain top talent. The D&O market is dynamic, and companies should work closely with their brokers to secure the best possible terms and conditions. This includes understanding the nuances of policy coverage and ensuring it aligns with the company’s risk profile.
- Cybersecurity Concerns: Cybersecurity is a growing concern for companies preparing for an IPO. There is a significant need for comprehensive cyber insurance to protect against data breaches and cyber-attacks, which can have significant financial and reputational impacts. Companies considering an IPO should conduct regular cybersecurity assessments in addition to securing comprehensive cyber insurance.
- Budgeting for Insurance: Adequate budgeting for insurance is vital. Companies should start discussions with their brokers early to understand the costs involved and to ensure that they have sufficient funds and coverage in place before going public.
- Regulatory Compliance: Compliance with regulatory requirements, such as those from the SEC, is a complex and ongoing process. Companies considering an IPO must have an experienced team to manage compliance, financial reporting, and disclosures. With the evolving regulatory landscape, particularly in relation to ESG initiatives, companies need to stay informed and adaptable.
As companies prepare for an IPO, understanding the transition from private to public D&O insurance is essential. The expanded exposure and increased liability necessitate a comprehensive risk management strategy. Engaging with experienced brokers early in the process can ensure that the company is adequately protected and ready for the complexities of going public.
If you have any questions about your coverage or are interested in obtaining coverage, please contact your Aon broker.
Watch the full webinar here.
About Aon
Aon (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that help protect and grow their businesses.
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