During the public placement of securities, issuers are legally required to publish a securities prospectus that contains detailed information about the opportunities and risks associated with the security. The resulting prospectus liability will affect the interest groups involved in the initial public offering to different degrees. However, it is always focused on the liability of the issuer and those persons who are responsible for the securities prospectus as signatories.
Securities prospectus insurance that has been tailored specifically for this risk offers wide protection in the event that claims are asserted against the policyholder.
In the event information in a prospectus is incorrect or incomplete, investors who have made their purchase decision on the basis of the securities prospectus can assert claims against those who have taken responsibility for the prospectus or those who initiated its issue.