The SPAC market is finally making a comeback. As we enter a period of the long-awaited SPAC revival, some liability dangers persist. Two common questions that keep being raised by our clients are: How much liability should the SPAC’s sponsor expect? How can we protect against it? These questions are not at all surprising. Most new SPAC IPOs are being helmed by experienced SPAC teams and sponsors who have seen SPAC litigation and enforcement over the last four years. They’ve experienced it either first-hand with their earlier SPACs or have watched their SPAC colleagues suffer through it, sometimes very painfully, without adequate insurance coverage.
Source: SPAC Sponsor Liability and Insurance Solutions