Securities Offering Liability Insurance

There are good reasons to consider Securities Offering Liability Insurance from AIG

SOLI is a fixed term, multi-year period, stand-alone insurance product, designed to protect companies and the individuals involved in securities offerings from adverse effects of claims against them arising from a securities offering, albeit with enough flexibility to tailor each policy to the offering in question, including initial public offerings and / or subsequent offerings of equity or debt securities.

Deep exposures

By raising capital from the public, a company is creating new relationships, and opening up potential liabilities which are closely scrutinised by regulators. Investors may claim the full value of their loss if the information in the prospectus has been proven to be wrong, possibly years later. A SOLI policy has limits tailored to the specific transaction, and for the duration of the exposures in the relevant jurisdiction.

Rules and regulations

Companies that want to offer their securities to the public, or trade their securities on a regulated market like the stock exchange, have to issue a prospectus. There are detailed rules about what has to be in a prospectus, what may or may not be left out and follow-up processes in the case that anything material changes once issued or in the case an error is discovered.

Who can be liable?

A 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 particularly if they can’t prove that proper care was taken preparing it. In the case of false representation, imprisonment is a possibility in some jurisdictions.

AIG’s protection

An AIG SOLI policy offers protection against some of the risks of ‘going public’, for every party 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).

Who is it for?

This product could be a benefit to companies of any size who are thinking of - or are in the process of - listing on a stock market.

What is covered?

A Securities Offering Liability Insurance (SOLI) policy covers the specific elevated exposures of securities offerings, even for the entity.

Claims

AIG has assembled a seasoned team of claims specialists who are experienced in managing some of the highest-profile D&O, PI, employment practices, crime and M&A cases in the industry, for entities of all sizes. Our close in-house collaboration with our underwriting colleagues allows us to facilitate prompt case resolution and the best possible claim outcomes. We offer access to some of the nation's premier attorneys, who have expertise managing even the most complex, sensitive claims and litigation.

To report a claim please contact us:
Phone +41 (0)43 333 37 00 (switch board)
Fax +41 (0)43 333 37 99
Email ClaimsCH@aig.com