PUBLICOFFERINGSECURITYINSURANCE
WhatisPOSI
POSI covers the company and its directors / officers against Prospectus claim arising from offering of a companyssecurities.POSIofferscompaniestheopportunitytoringfencethesignificantexposurespresented bysecuritiesofferings
NeedforPOSI
o o o o Increasedshareholderlitigationwhenthecompanymakesapublicofferingofitssecurities ResponsibilitiesincumbentontheDirectorsandOfficersofcompaniesforthepublicoffering Need for specialist insurance protection for the issuer of securities with suitable protection for the companyanditsdirectors/officers CriminalandcivilexposuresfortheaccuracyofthecontentofaprospectusaspertheCompaniesAct /SEBIRegulationsand/orotherapplicablelaws
WhoisCovered
o o o o o o IndividualDirectorsandOfficers Employees,Spouse Administrator/executor TheCompany/Issueranditssubsidiaries Covercanextendtounderwriterexposure Covercanextendtocontrollingshareholder/sellingshareholder
PotentialSourceofClaims
o o o o OverstatementofRevenues MisrepresentationinProfitForecasts MisrepresentationofRiskfactors FromobligationsundertheSecuritiesAct/otherequivalentcompulsoryrequirements
MajorExtensions
o o o o o MediamanagementfeesforForcemajeureevent Costs of public relations consultants to mitigate reputation injury in the event of postponement or cancellationonaccountofaforcemajeureevent Regulatorycrisisresponsecosts Foracriticalregulatoryeventthatmightsignificantlydelayorleadtocancellationoftheoffering Emergencycosts Investigationcosts
o Exclusions
o o o o o
BenefitofPOSI
o o o o Customizablemultiyearpolicyperiod Advancementofdefensecosts Premiumcanpossiblybecapitalizedanddeductedfromissueproceedsandthusisnotabottomline deductionfromP&L Limitofliabilitycanbecustomizedasperrequirement