This insurance offers coverage to companies preparing to make an IPO as there can be considerable risks in this process, and insurance protection is recommended to cover the company, its officers and directors, the underwriters, and other parties involved in the process.
An IPO insurance policy covers several liability issues associated with the process
What can be covered?
- Prospectus – the document company uses to disclose information and market the IPO to prospective investors.
- Cost of litigation – Liability incurred by the Directors and Officers, its underwriters