SPACs and the Associated Insurance Coverage Risks at Play
The top three coverage issues potentially arising out of SPAC transactions.
Insurance issues surrounding the Special Purpose Acquisition Company (SPAC) frenzy over the past 18 months are only beginning to percolate. As SPACs continue to raise capital and consummate transactions, SPAC-related litigations are on the rise. In addition to increased risk of SPAC-related litigations, SPACs, SPAC sponsors, the target company, the going-forward company and each of these entity’s directors and officers face complex insurance coverage issues. This article will present the top three coverage issues potentially arising out of SPAC transactions.
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