The prospectus must explicitly confirm that the people responsible for it have taken reasonable care to make sure the information is true. So they, as well as the company and its directors, may face civil and criminal liabilities if the prospectus is inaccurate, incomplete or misleading especially if they can’t prove that proper care was taken preparing it. In the case of false representation, imprisonment is a possibility.
AIG knows that directors and officers need to embrace opportunity and that companies must constantly manage their capital structure and their ability to finance expansion. We want to help our customers face the future, grow, and conduct business with confidence. We recognize that the situation from which a claim arises can be extremely stressful, and their reputation may be damaged. Thus, we offer a solution that will help the parties involved to continue their job without looking over their shoulders.
An AIG Public Offering of Securities Insurance (POSI) policy offers solution against certain risks for all parties involved in the transaction and for the length of time those exposures can last.
AIG also has worldwide capabilities and can underwrite from any country where we are licensed to operate (and we have the largest owned global network of any insurance company).
Prospectus refers to all disclosure documents, ‘red-herring’ documents, and statements made by any Insured in any ‘Road Show.’
Prospectus liability Insurance covers the company, its directors, officers, employees, underwriter, controlling shareholder/s and selling shareholders against claims arising from offerings of a company’s securities. This includes written demand, civil or criminal, regulatory investigation seeking legal remedy against an Insured for an alleged untrue or misleading statement or omission, in the prospectus document. Prospectus Liability is also known as ‘Public Offering of Securities’ insurance.
Prospectus Liability includes an extensive coverage which addresses:
When you buy insurance from AIG, you can have confidence that we stand ready to help you recover quickly when the unexpected happens. The claims operation that underpins every AIG policy is one of our greatest strengths, with a strong local claims team backed by our global network of expertise to support you when you face a loss.
For claims associated with Prospectus Liability, please reach out to your insurance broker to assist you. The client must report in writing to AIG as soon as practicable and within the Policy Period. Potential facts or circumstances that may lead to a claim should be reported prior to the expiry of the Policy Period.
The client must report in writing to the AIG as soon as practicable and in any case within thirty (30) days after the end of the Policy Period or the Extended Reporting Period if the client notifies AIG no later than thirty (30) days after the date such Claims were first made against the Insured.
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Phone: +63 2 878 5456