For more on this part of the insurance industry:
Public companies insurance is a group of policies that protect businesses listed on a stock exchange (public limited companies or PLCs) from major hazards. It can cover events like:
Public companies are listed on the London Stock Exchange (LSE) and sell shares to the public. They follow strict rules and face more legal and public pressure than private firms.
They make up over 80% of the UK market. Without insurance, one legal claim could cause major financial loss.
A UK-listed tech company had to correct its financial results. Soon after, investors filed a large lawsuit. The business had no public offering of securities insurance (POSI), and it struggled with major legal costs.
If it had the right insurance in place, it could have claimed for these costs. This case shows how public companies insurance can shield UK firms from the risks that come with being on the stock market.
Public companies are taking part in more mergers and acquisitions, both in the UK and abroad. This has increased demand for warranty and indemnity insurance, along with stronger directors and officers (D&O) cover.
At the same time, shareholder activism is rising, especially over ESG and pay. AI use is also creating new dangers linked to data and fairness. Other issues brokers need to be aware of include:
Brokers should watch for investor claims over high bonuses at loss-making firms which can test how far D&O policies will respond. Overseas links also raise the risk of breaching UK, US, or EU sanctions.
Yes, it is often seen as essential and not optional. It helps safeguard the company and its directors from costly legal claims.
Lawsuits from investors, staff, or regulators can happen at any time. One claim could cost millions and hurt a company’s name and finances.
Common coverage options for public companies insurance are:
Most public companies have a mix of these covers. Brokers can help build the right policy for each firm.
This cover is useful for large firms, but also for smaller ones planning to list or expand abroad. Those who need this include:
Public companies insurance is made for listed businesses that encounter more legal and reporting risks. It helps secure both the company and the people running it.
If someone is hurt or property is damaged by a business, they can make a claim. The steps below outline what one needs to do to make a claim:
Keep records of all contact. If the business doesn’t respond, a solicitor or claims adviser may help.
These are designed for different kinds of business. The table below shows the main differences between the two:
|
Feature |
Public liability insurance |
Public companies insurance |
|---|---|---|
|
who it's for |
any UK business or sole trader |
PLCs listed on stock exchanges like the LSE |
|
what it covers |
injury or damage caused to other people |
legal claims against directors or the business itself |
|
claim examples |
customer trips, damage at a client’s property |
shareholder action, staff disputes, regulatory probes |
|
legal requirement |
not a legal need but often required by clients |
not required by law but expected for listed companies |
Public liability protects others. Public companies insurance safeguards the company and its leadership from bigger legal and financial threats.
