Specialist insurer Beazley has launched a directors’ and officers’ (D&O) product suite designed specifically for US-domiciled Special Purpose Acquisition Companies (SPACs).
Beazley’s new D&O products for SPACs offer dedicated coverage for either the individuals, or the entity and individuals combined, to provide greater transparency and clarity about insurance coverage, from the initial public offering (IPO) to the initial business combination. The specialized needs of SPACs have historically been met through endorsements to existing D&O coverages.
Jim Rizzo, Beazley Executive Risk underwriter and a SPAC expert who has underwritten these risks for two decades, is leading the initiative supported by a seasoned team of underwriters based in the US and London.
Jim Rizzo said: “These streamlined products are specifically designed for SPACs and their officers and directors at a time when heightened regulatory scrutiny, media attention and an increasingly active plaintiffs’ bar make it critical that they have appropriate coverage and fully understand what that coverage is.”
In 2020 there were 248 SPAC IPO transactions, the most in the history, according to SPACInsider.[i] Year to date, there have already been 202.
Jeremie Saada, Head of US Executive Risk, added: “Beazley is stepping in to address a dramatic need for capacity in the D&O insurance market for SPACs. This specialized product suite for SPACs adds to Beazley’s balanced portfolio of offerings and positions us to be a valuable business partner to this growing market segment.”
Wayne Imrie, Head of London Market D&O, concluded: “Our focus as always remains squarely on meeting the needs of our clients in progressive and innovative ways. Our experience in this field coupled with our dual platform capabilities has positioned us favourably to streamline and enhance the way coverage has been traditionally offered, ensuring greater peace of mind and a superior experience for those who choose to do business with us.”
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