SPACs and De‑SPACs face heightened disclosure, conflicts‑of‑interest, dilution, and projection‑related risks, with expanded liability and issuer obligations now more closely aligned to traditional IPOs under recent SEC rules.

Organizations should also anticipate securities litigation risk around the De‑SPAC process and subsequent public‑company operations, as SPAC‑related filings have been a distinct trend in recent years.

D&O insurance protects individual leaders and, in many programs, the entity itself against claims alleging wrongful acts—funding defense, settlements, and judgments that can threaten personal assets and the corporate balance sheet. D&O coverage through the SPAC IPO, De‑SPAC closing, and post‑merger period is critical.

For SPACs, teams often evaluate Side‑A‑only versus ABC (or blended) structures to balance personal asset protection with entity balance‑sheet protection and retaining vs. transferring risk—while clarifying who and what is covered and potential coverage gaps.

For De‑SPACs, considerations include the go‑forward program structure, whether to include full prior‑acts coverage for the SPAC, dedicated Side‑A runoff for SPAC directors/officers, and appropriate limits—with a clear grasp of insureds, exposures, and limitations.

Programs commonly complement D&O insurance with management liability coverage such as employment practices liability (EPL) and fiduciary liability coverages, plus cyber/technology errors & omissions, crime/financial institution bonds, and transaction liability (e.g., representations & warranties).

Depending on the deal funding, PIPE financing dynamics may introduce additional disclosure and execution risks – making coordinated insurance, governance, and compliance planning essential.