Policy snapshot
A specialised D&O cover taken when a company is going for IPO, FPO, rights issue, or private placement — to cover liabilities arising from misstatements in offering documents.
What is POSI (Public Offering of Securities Insurance)?
POSI protects directors and stakeholders during public fundraising events from liabilities due to misstatements or non-disclosure. It is crucial for any IPO-bound company.
What can it cover?
- The policy covers liability claims arising from errors, misstatements, or omissions in offering documents or disclosures made during the fundraising process. It protects the company, its directors, and the investment bankers/underwriters from investor lawsuits and regulatory scrutiny.
Who should consider it?
- Companies preparing for IPO/FPO, Startups entering public markets, PE/VC-funded firms doing equity placements
Key features to understand
- {"heading": "Key Features", "bullets": ["Covers directors, underwriters, and the company", "Protects against investor claims post-offering", "Issued for the offering period (not annual)", "Replaces D&O for that specific transaction"]}
What deserves attention before you buy?
Coverage, exclusions, sub-limits, deductibles, waiting periods, warranties and underwriting can vary between insurers and policy versions. The policy wording and schedule remain the definitive contract. Novo can help you review the relevant terms for your requirement.
Read the wording, not just the brochure
The schedule and policy wording determine the actual contract.
Compare meaningful differences
Look at exclusions, limits, deductibles, conditions and claim requirements—not premium alone.
Think beyond purchase
Servicing and claims-related support can matter as much as placement.