|AMERICAN INTERNATIONAL GROUP, INC. (AIG) HAS ANNOUNCED THAT THE AMERICAN INTERNATIONAL COMPANIES HAVE INTRODUCED CRISISFUND PLUS|
NEW YORK, June 7, 1999 - American International Group, Inc. (AIG) has announced that the American International Companies have introduced CrisisFund Plus*, excess crisis communications coverage that provides up to $1 million to cover fees of an approved public relations firm or other professional in helping an insured manage a covered crisis event. CrisisFund Plus provides coverage in excess of an insured's CrisisFund or Employment CrisisFund, coverage endorsements underwritten by the American International Companies.
"More corporations are recognizing that properly managing communications during a crisis situation can help minimize damage to stock price, alleviate customer and employee concerns, and help to head off or reduce the severity of litigation," said John Cavoores, President of AIG member company National Union Fire Insurance Company of Pittsburgh, Pa. "The success of CrisisFund and Employment CrisisFund in helping companies mitigate the effects of negative publicity on the bottom line has led to the development of CrisisFund Plus, with higher limits and new value-added services, to address clients' evolving needs."
CrisisFund Plus provides coverage for three different types of crises: Securities Confidence, Hostile Takeover, and Employment Practices. A securities confidence crisis is triggered when the insured's management determines that a covered crisis event could be associated with an immediate and material negative impact on the insured's stock price. A takeover crisis is triggered upon public announcement by the insured of an unsolicited bid by an outside party to acquire all or substantially all of the insured's securities, or to elect a majority to the insured's board of directors against their will. An employment crisis is triggered by the insured's General Counsel when an employment crisis incident is discovered, alleged, or covered in the media.
Insureds purchasing CrisisFund Plus may utilize the services of Hill & Knowlton, the progam's crisis response manager, or may select among pre-approved public relations firms specializing in crisis management available though CrisisFund or Employment CrisisFund. The pre-approved firms are Abernathy MacGregor Frank; Edelman Public Relations Worldwide; Kekst and Company; Robinson Lerer & Montgomery; Sard Verbinnen & Company; and Sitrick and Company. Additionally, Kroll Associates, a leading international crisis management and investigative consulting firm, has been pre-approved. Insureds may also, with prior approval of the American International Companies, retain another public relations firm for these purposes.
CrisisFund Plus insureds are automatically provided with PROMPT, crisis planning software developed by Hill & Knowlton, which can help a company to establish a public and investor relations department, utilize outside crisis management firms, and handle and disclose crises properly. When appropriate, the firms available through CrisisFund Plus can also coordinate a wide range of expert services for insureds.
For more information about CrisisFund Plus, contact an insurance broker, or the American International Companies at firstname.lastname@example.org.
AIG is the leading U.S.-based international insurance organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write property, casualty, marine, life and financial lines insurance in approximately 130 countries and jurisdictions, and are engaged in a range of financial services and investment management businesses. American International Group, Inc.'s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland, and Tokyo.
* The above described coverage may not be available in all states, and the above description thereof is neither a complete description nor a complete list of all terms, conditions and exclusions. Note that certain terms used in the above are defined in the policy. Please see the policy for a complete description of its scope and limitations of coverage. Issuance of coverage is subject to underwriting.