Specialist insurer Beazley has announced the launch of a directors’ and officers’ product suite designed specifically for special purpose acquisition companies (SPACs).
Beazley’s new D&O products for US-domiciled SPACs offer dedicated coverage for either the individuals, or the entity and individuals combined, to provide greater clarity about insurance coverage from the initial public offering to the initial business combination, the insurer said. The needs of SPACs have historically been met through endorsements to existing D&O policies.
The initiative is led by Jim Rizzo, an executive risk underwriter and SPAC expert, who has more than two decades of experience. Rizzo will be supported by a team of underwriters based in the US and London.
“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 plaintiff’s bar make it critical that they have appropriate coverage and fully understand what that coverage is,” Rizzo said.
In 2020, there were 248 SPAC IPO transactions – the most in history. So far in 2021, there have already been 202.
“Beazley is stepping in to address a dramatic need for capacity in the D&O insurance market for SPACs,” said Jeremie Saada, head of US executive risk at Beazley. “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.”
“Our focus, as always, remains squarely on meeting the needs of our clients in progressive and innovative ways,” said Wayne Imrie, head of London market D&O at Beazley. “Our experience in this field, coupled with our dual platform capabilities, has positioned us favorably 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.”
