NEW YORK--(BUSINESS WIRE)--Aug. 15, 2013--
American International Group, Inc. (AIG) today announced that it is now
offering globally up to $100 million in limits for Side A Directors and
Officers (D&O) liability insurance.
This new capacity from AIG, combined with the insurer’s financial
strength and claims handling experience, can facilitate the efficient
resolution of severe and complex litigation. Companies can now meet
their Side A needs by significantly reducing the number of insurance
carriers and policy layers necessary for adequate coverage, creating a
more efficient D&O insurance structure.
“Too often, settlements are delayed or even increased when customers
wait for several insurance carriers to agree on the resolution of a D&O
claim,” said Michael Smith, President of AIG Global Financial Lines.
“AIG is pleased to provide our clients expanded capacity to build one
tower to avoid multiple coverage positions from different carriers. This
is a clear benefit when resolving a significant claim.”
Side A insurance responds when indemnification is not available for
individual directors and officers to pay the costs of defending and
resolving legal actions against them. This can happen when a company
becomes insolvent, wrongfully refuses to indemnify, or is otherwise
prohibited from indemnifying directors and officers. Side A coverage can
also fill in coverage gaps that may occur in a large D&O program.
A traditionally important aspect of D&O coverage, Side A is seen as
critical protection in a challenging economic and regulatory
environment, with high rates of bankruptcy filings and corporations
withholding indemnification when they suspect an individual has acted in
a way that would void such protection.
The expanded $100 million capacity is available in addition to primary
Side A limits found in AIG’s comprehensive D&O policies that also cover
corporate entities (Side A/B/C policies).
American International Group, Inc. (AIG) is a leading international
insurance organization serving customers in more than 130 countries. AIG
companies serve commercial, institutional, and individual customers
through one of the most extensive worldwide property-casualty networks
of any insurer. In addition, AIG companies are leading providers of life
insurance and retirement services in the United States. AIG common stock
is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com
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AIG is the marketing name for the worldwide property-casualty, life and
retirement, and general insurance operations of American International
Group, Inc. For additional information, please visit our website at www.aig.com.
All products and services are written or provided by subsidiaries or
affiliates of American International Group, Inc. Products or services
may not be available in all countries, and coverage is subject to actual
policy language. Non-insurance products and services may be provided by
independent third parties. Certain property-casualty coverages may be
provided by a surplus lines insurer. Surplus lines insurers do not
generally participate in state guaranty funds, and insureds are
therefore not protected by such funds.
Matt Gallagher (Media)