De-SPAC D&O Liability Insurance

What Is De-SPAC D&O Liability Insurance? Who is it for? Why do you need it? Why get it with First Cover? Still in doubt?

What Is
De-SPAC D&O Liability Insurance

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
Securities litigation
Risk of insolvency