Stock Market Insurance
Insure your equity holdings against catastrophic drawdown.
A defined-peril policy that pays out when a qualifying stock position, basket, or index allocation suffers a covered loss beyond your agreed deductible — without forcing you to sell.
How it works
Three numbers. One contract. Real payout.
You pick three values: the position you want insured (an individual stock, ETF, or index), a deductible expressed as a percentage drawdown from the policy-start value, and a coverage period of 6 to 36 months. If the position closes below the deductible threshold at the end of the period, Newlights pays the difference up to your policy limit.
- 1.
Insured value
Set per position. Maximum $25M per single insured stock; $250M aggregate per insured.
- 2.
Deductible
Choose 10%, 15%, 20%, 25%, or 30% drawdown. Lower deductible = higher premium.
- 3.
Coverage period
6, 12, 18, 24, or 36 months. Premium scales with term length and underlying volatility.
Sample policy
Concentrated RSU position
| Insured ticker | Single U.S. listed equity |
| Insured value | $1,000,000 |
| Deductible | 20% drawdown |
| Coverage period | 12 months |
| Annual premium | $11,400 |
| Max payout | $800,000 |
Illustrative only. Final pricing depends on underlying volatility, holding period, and applicant disclosures.
What we insure
Built for the positions that matter most.
Concentrated single stock
Founders, executives, and early employees with large positions in one ticker.
IPO & lock-up shares
Coverage from quiet period through 180-day lock-up expiry on listed equities.
Index & ETF baskets
Drawdown protection on S&P 500, Nasdaq 100, sector ETFs, and custom baskets.
Retirement equity sleeve
Insure the equity portion of a 401(k) or IRA against a covered drawdown event.
What is — and isn't — covered
A defined-peril policy. Read in one page.
Covered
- End-of-period drawdown below deductible
- Single-issuer default while held
- Trading halt > 30 calendar days
- Delisting from a major U.S. exchange
- Material fraud-driven price collapse
Not covered
- Options, futures, and short positions
- Intraday losses you trade out of
- Margin calls and leverage losses
- Positions sold before the period ends
- Drawdown within your deductible
Frequently asked
Is this an option contract?
No. It's a regulated insurance contract written by Newlights Indemnity, Inc. and admitted in all 50 states. You don't need an options approval level to buy it.
Can I sell my insured position?
Yes — but doing so before the coverage period ends voids the policy for that position. Partial sales are allowed; coverage scales proportionally.
Are premiums tax-deductible?
Generally not for individuals. Premiums paid by a business or family-office entity may be deductible — consult your CPA.
How fast do claims pay?
Payable within 30 days of the coverage period end-date once we receive your custodial confirmation.
Run a no-obligation premium estimate.
A Newlights specialty advisor will return a written indication within four business hours.