Securities Liability

Securities Liability coverage protects against losses resulting from Wrongful Securities Acts.

Key Definition

Wrongful Securities Acts are defined as any actual or alleged omission, error, misstatement, misleading statement, neglect or breach of duty, which in whole or in part is based upon, arises from, or is a consequence of the purchase or sale of, or the offer to purchase or sell, any securities issued by the financial institution.

Key Features

≡ Coverage applies to all state and federal securities laws (not just the Securities and Exchange Act of 1933).

≡ Coverage includes public offerings, private offerings, going public or private transactions, and initial and subsequent stock offerings.

Availability

The directors and officers are covered under the D&O Policy. Entity coverage is available as:

≡ Part of the Broad Form Company Liability (BFCL) Endorsement; or

≡ A separate Securities Liability Endorsement.