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
