D&O Coverage for SPACS & DeSPACs

D&O Coverage for SPACS & DeSPACs

We have developed two separate and unique approaches to securing D&O coverage for SPACS:

OPTION 1 – TRADITIONAL INSURANCE: We will send your draft S-1 to all viable insurance carriers for their review. Following the initial review, a video conference call will be set up with the carriers and your SPAC or IPO team to pitch the investor deck (generally two weeks after the initial review of S-1). Negotiating terms and conditions post-call commences, which will take another week or two.

OPTION 2 – CAPTIVE INSURANCE: In short, this Captive will provide traditional D&O insurance by pooling all SPAC deals together, with additional reinsurance provided by an AM Best A XII rated carrier. Also, very competitive in pricing, one key difference is if your policy has no losses, the company has the opportunity of a return in premium. We are the only broker in the country currently with this program. 

SAMPLE AVERAGE**
SPAC D&O PRICING

A-SIDE ONLY

  • $2.5M limit $275,000 – $300,000
  • $5.0M limit $475,000 – $525,000

6-year run-off factors 300% – 350%

ABC PRICING – STANDARD MARKETS

  • $2.5M limit $375,000 – $450,000
  • $5.0M limit $650,000 – $725,000

Standard Retention of $5M, possibly lower for sub $100M raises

6-year run-off factors 300% – 350%

BRP OXFORD CAPTIVE OPTION

PRIMARY ABC

  • $2.5M limit $299,075
  • $3.0M limit $350,000
  • Standard Retention of $5M, possibly lower for sub $100M raises

PRIMARY A-SIDE

  • $2.5M limit $200,000

6-year run-off factors 300%

  • Can add $2.5M of ABC to the above for: $250,000 – $275,000
  • Can add $2.5M of A-Side to the above for: $215,000 – $225,000
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Hiring Director of Risk Mgmt - FB
IPO - CONVERTING FROM A PRIVATE COMPANY TO A PUBLIC COMPANY
Work backwards. Start the process roughly 180 days from when you expect to IPO, and set your timeline...
11
SPAC Webinar
In this webinar you will hear from Mike Tomasulo, Managing Partner, National Practice Leader, BRP Management...
Hiring Director of Risk Mgmt - FB (2)
IPO Readiness - Panel
During the 34th Annual Roth Conference, Mike Tomasulo, Managing Partner, National Practice Leader, BRP...
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