Public Offering of Securities Insurance (POSI)

Prospectus liability is the sharpest sword in investor processes. Companies that issue shares or bonds must inform their investors in detail about the opportunities and risks of the investment in a securities prospectus.

If this does not succeed and investors then incur losses with such securities, the company and all persons involved in the issue - from the board of directors to the previous owner - can face high claims for damages.

Going onto the trading floor quickly becomes a minefield. Prospectus liability risk not only includes incorrect or incomplete information in the sales prospectus. Even careless forecasts made by individual managers at roadshows or in interviews can become a cost trap.

The solution

Our Public Offering of Securities Insurance - POSI insurance for short - protects companies particularly extensively against the prospectus liability risk.

The protection principle is based on three pillars: As a pecuniary loss liability insurance, POSI takes on the expense of examining the liability issue, covers the costs resulting from the defense against unjustified claims for damages and satisfies justified claims.

What's covered?

All incorrect, incomplete or omitted information that the company and its representatives make in the preparation and execution of the securities issue.

Who is insured?

The company takes out POSI insurance. As an issuer, the company insures not only its own liability risk but also that of its board members and the liability risk of the previous owners who control the company and/or sell securities. The protection also includes all employees entrusted with the issue of securities.

No company can issue a security without lawyers, banks and auditors. As a rule, they can be released from any liability. Good to know: POSI also covers the costs of defending against or compensating for investor claims that would actually be borne by the service provider.

The protection

The driver of innovation for the new development of prospectus liability insurance from hendricks was our many years of experience in claims management for national and international D&O and prospectus liability cases.

The market-leading POSI wording offers unique all-round protection - starting with precautionary legal advice through to the assumption of the usually higher fees for defense by specialized lawyers in international claims - for example in the USA.

We would be happy to provide you with further information and a personal offer.