Prospectus Policy

A Prospectus Liability policy is a specialised coverage designed to protect the directors & officers of a company, the company itself and any vending shareholders for claims arising from allegations of mis-statement or mis-representation in prospectus, information memoranda or similar documents issued by a company.

Typically coverage is provided for:

  • The costs of legal representation incurred by individual directors in the defence of any proceedings.
  • Settlements, compensation and/or damages awarded against directors or officers.
Who is Protected

Coverage is provided to:
  • Directors & Officers of the company issuing the prospectus.
And in addition (if required) to:
  • The Company as well as its Directors & Officers.
  • Vending shareholders
  • Any professional advisers retained by the company in conjunction with the issue.
The Company in most cases will be liable to pay for legal costs and awards made against the directors & officers whilst carrying out their duties , however this may be of little consequence if the company does not have the funds to do so.

The company itself may be the subject of and action against it. By naming the company as an insured party it will avoid the situation of having to pay for its own defence when it can least afford it and avoid the problem of allocating costs between individuals and the entity.

To read and print our policy and proposal documents, you will need Adobe Acrobat Reader. Download it here