April 27, 2023
Shareholder Activist Protection Insurance? Yes, That’s a Thing
Hat tip to Michael Levin at TAI for linking to this. Apparently, listed UK companies outside the FTSE 100 can buy shareholder activist protection insurance (SAPI) developed by Volante in conjunction with Marsh in the UK. Volante highlights expertise in mitigation, saying they introduce clients to experts before any activist event, and claims this product is the first of its kind:
SAPI is a true world premiere, no one before us has made shareholder activist risk insurable. We identified a whitespace opportunity in the market and decided to design a product centered around client need. By listening to our partners, many of which are activist experts, we have finessed a niche product.
What does it cover? Here’s an excerpt from Marsh’s website:
SAPI is designed to cover the legal, PR, and other professional costs incurred during an activist campaign from receipt of the initial demand, through any proxy fight, and to the conclusion of an activist settlement, including:
Costs The reasonable costs and expenses of investigating, mitigating, and responding to activist demands, including, legal, PR, and other professional/consulting costs, together with proxy advisory costs.
Pre-loss mitigation 5% of annual premium can be invested into mitigation services offered by Volante’s mitigation partners.
Extensions Emergency costs and court attendance costs.
Sub-limits For non-public campaigns, proxy fights, emergency costs, and court attendance costs.
– Meredith Ervine