De-SPAC D&O liability insurance protects the executives of the private target companies, which ultimately become the combined public company by merging with SPAC. The risks associated with de-SPAC mirror that of any other IPO or public company, including securities litigation, risk of insolvency, derivative actions, and regulatory actions.
Who is it for
1. The pre-closing directors and officers of the private target company that will merge with the SPAC
2. The post-closing directors and officers of the surviving, post-merger public company.
Why do TARGET COMPANIES need it?
Parties vulnerable to claims include the SPAC, the target private company, the new public company, and nearly everyone involved, including members of the associated financial advisory and accounting firms.
Protection is essential throughout every phase of the De-SPAC process to combat its unique set of risks, including:
Alleged wrongdoings such as conflicts of interest, inadequate disclosures, inadequate consideration and/or due diligence failures.
Emergence of a large claimant group following the underperformance of the new company, including shareholders of the newly public company, Private Investment in Public Equity (PIPE) investors, and shareholders of the SPAC.
Litigation and merger objection claims specific to the transactions
Derivatives and regulatory actions
Risk of insolvency
why get it with first cover?
Based on your needs and budget, we can come up with the most feasible solution.
Within 24 – 48 hours to receive your preliminary quote, fastest turnaround time in the industry.
No matter if you are based in Asia, Europe, or U.S., we can provide seamless solutions across all different markets!
From initial discussion to assisting you with claims, we will be with you on each step of the way!