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Beazley launches special D&O coverage for SPAC



On Tuesday, Beazley PLC launched a number of coverage responsibilities for specialty acquisition companies.

A spokeswoman for the London-based insurance company said in an email that Beazley would offer side A, B and C coverage – which could cover individuals or business entities involved in SPACs – and would normally offer limits of 2.5 million dollars or 5 million dollars.

"These are tailored policies designed for the unique features of a SPAC to provide a simplified contract with clean, clear wording and fewer (19659002) SPAC, sometimes referred to as blank check companies, have seen increasing popularity in the past year. A wide range of companies have used the structures as a way to become public without going through a traditional IPO.

Beazley will offer up to 24 months of initial policy terms "designed to cover the typical life cycle of a SPAC," the spokeswoman said, and

The coverage is available to US resident SPACs and the initiative is led by Jim Rizzo, executive risk insurer at Beazley in New York.

According to the website SPACinsider.com, there were 248 SPACs formed 2020, compared to 59 in 201

9, and 232 have been formed so far this year.

Although SPAC is often seen as a faster and more efficient way to To raise money than an IPO, the Securities and Exchange Commission issued an investor bulletin on SPAC in December, warning that the financial interests of a SPAC's management team and board members "often differ from the financial interests of public shareholders." Several SPAC-related shareholders' lawsuits have already been initiated. Catalog

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