Also referred to as prospectus liability insurance, IPO insurance is specifically designed to protect corporate directors, officers, and executives from misrepresentations and other errors made throughout the IPO process. A multi-year policy can be placed for a one-time premium that covers claims made up to seven years after an IPO.


Since IPOs are stand-alone high-risk transactions for directors, officers, and executives, IPO insurance policies provide limits dedicated for this event and will ring-fence related event liabilities, thereby preserving the company’s day-to-day directors’ and officers’ liability insurance limits for its usual management liability risks.