Prospectus liability commonly applies when shares are for offer or exchange. The main risk relates to misinterpretation of information contained in the investment prospectus that is sent to current and potential investors. This product covers the company making the share offer.
Our cover allows companies to ring-fence prospectus liability. The cover dovetails with our Directors & Officers Liability insurance to ensure that there are no gaps between the products
The cover continues to apply even if the management of the company changes
Covers claims of misleading or inaccurate information in the prospectus
Typically cover is for six years but can have shorter duration