Public Directors and Officers Insurance
What is Public Directors and Officers Insurance?
AIG’s Directors and Officers Liability Insurance is cutting edge management liability protection to respond to the personal risk directors and officers of publicly held companies face. It is coverage that responds to investigations of individual clients and unique local regulatory requirements through global liberalization provisions.
Why does your organization need Executive Edge Public D&O Insurance Coverage?
- A company's senior executive is investigated as part of an informal "inquiry" by the Ontario Securities Commission
- A lawsuit is filed against an organization alleging securities fraud; the organization spends over $20M on defence costs
What does Executive Edge Public D&O Insurance cover?
The following coverages are available under AIG’s comprehensive D&O liability insurance:
- Entity Coverage - Goes beyond securities claims to include violations of Canadian environmental laws, costs of investigating derivative demands and actions and costs of seeking dismissal of derivative suites
- Pollution Coverage - Individual and entity cover (provided an executive is a co-defendant) for loss (other than clean-up costs) arising from claims (including administrative or regulatory proceedings) alleging violation of Canadian environmental laws
- Privacy Violation - Individuals covered for a violation of a person’s right of privacy in employment or securities claims; company covered in securities claims
- Loss - Coverage much broader than defence costs and judgments or settlements
The AIG Advantage
- Indemnification Uncertainty Eliminated - Early advancement of defence costs for individuals where the company fails to indemnify for any reason
- Investigations Involving Individuals - Early and broad coverage including informal “inquiries” and targeted investigations
- Severability - Reassures individuals that their coverage cannot be jeopardized by the behaviour of others
- Settlement Control - Gives insured the ability to affect a settlement which is within the retention without the insurer’s consent
- Foreign Jurisdictions - Ensures the most favourable terms and conditions from local AIG policies are applied to claims in foreign jurisdictions
Private and Not for Profit Insurance
What is Private and Not for Profit Insurance?
Private and Not for Profit Insurance is protection for directors and officers of private, non-profit, and financial institutions against the risk they face while executing their management responsibilities. AIG’s PortfolioSelect®, clients receive a state-of-the art modular policy form designed to combine several customized liability insurance coverages.
Why does your business need PortfolioSelect® Management Liability coverage?
Insureds can build their financial lines policy to best fit their risk profile by choosing one or more of the available management liability products and, for lenders and insurance companies, professional liability coverages.
What does PortfolioSelect cover?
PortfolioSelect is a single, convenient insurance policy that enables clients to combine Management Liability, Cyber Liability, and specific Professional Liability coverages to fit their individual needs.
The AIG Advantage
- One application and one policy for multiple coverage lines make PortfolioSelect both comprehensive and efficient
- Universal Language: With cutting edge terms from our Edge suite of products, brokers and clients benefit from consistent policy wording and endorsements that can be customized for specific risk profiles
- Flexible Limits: With the option to separate or share limits across multiple coverage lines, PortfolioSelect provides maximum flexibility for insureds
Side-A Directors and Officers Insurance
What is Side-A Directors and Officers Insurance?
Side-A Directors and Officers Liability Insurance (Executive Armour) is a follow form excess with Difference in Conditions (DIC) coverage that is distinct from other Side-A DIC policies. The policy provides individual directors and officers with the coverage they need to protect themselves and their assets when facing a claim.
Why does your business need Executive Armour Insurance coverage?
- A pension plan director is alleged to have committed a "Wrongful Act" by making an alleged misleading statement about the plan's investment strategy
- A company director incurs costs associated with being extradited from a foreign country
- A company director is placed under formal investigation by the Ontario Securities Commission for alleged insider trading
What does Executive Armour Insurance cover?
- An expanded definition of "Wrongful Act"
- A broadened definition of claim encompasses both formal and informal investigations by any governmental or self-regulatory authority, including the U.S. Securities and Exchange Commission (SEC)
- Non-rescindable, fully severable application—the conduct of one insured cannot be imputed to another when determining availability of coverage in a claim
- Worldwide coverage and automatic incorporation of foreign AIG policy enhancements
- Coverage for losses from claims arising from extradition from any country
- Express coverage for settlements, judgments and defence costs in claims alleging violation of Section 11 or 12 of the Securities Act of 1933, as amended
The AIG Advantage
- A unique "drop down" feature that triggers coverage if organizations owing indemnification or underlying insurers refuse or fail to pay for any reason
- As a claims-made policy form; it does not require notice within the policy period as a condition precedent to coverage
- As a true-follow form, excess structure ensures that coverage builds off the often extensively negotiated primary program enhancements and key definitions
- Limited, fully severable exclusions
Multinational Directors and Officers Insurance
What is Multinational Directors and Officers Insurance?
Multinational Directors and Officers Insurance (Passport for Directors and Officers) provides liability coverage to directors and officers and corporations with subsidiaries and operations outside of their home country. With Multinational Directors and Officers Insurance, AIG provides a clean, efficient way for multinationals to secure D&O liability insurance that aligns with local laws, regulations, and customs worldwide.
Why does your business need Passport for Directors and Officers (D&O) Insurance coverage?
- A company director of a foreign subsidiary is alleged to have violated local tax laws
- A subsidiary imports items that violate local import regulations
- A senior executive at a foreign office is alleged to have violated local regulations concerning legal disclosures
What does Passport for Directors and Officers Insurance cover?
- The ability to apply separate aggregate limits or a single worldwide aggregate limit to coverage
The AIG Advantage
- Supportive services from our experienced, knowledgeable in-country D&O claims and loss control professionals to provide help in successfully navigating regulatory environments worldwide
- The ability for you to choose from local, global, and controlled master program options based on the global business needs of an organization
- Worldwide coordination of easy-to-understand coverage
Public Offering Securities Insurance
What is Public Offering Securities Insurance?
Public Offering Securities Insurance is a tailored D&O liability insurance coverage specifically designed to help protect those involved in a Canadian prospectus offering or listing, including the company and its executives, controlling shareholders, selling security holders and financial underwriters.
Why does your business need Prospectus Edge® D&O Liability Insurance coverage?
- Three years after a prospectus is released, a shareholder files a lawsuit alleging misleading statements were made during the prospectus offering by the company board chair
- A pension plan alleges financial errors were contained in the prospectus after investing in the company
- A shareholder alleges there were errors of omission in the prospectus after investing in the company
What does Prospectus Edge D&O Insurance cover?
From critical crisis communications to pre-authorized legal expertise and more, AIG’s Prospectus Edge® D&O Insurance helps protect a company’s senior executives, as well as those who helped in the issuing of a prospectus. Coverage includes:
- Access to CrisisFund® Appendix, our loss prevention solution to help companies manage communications surrounding potential events after securities have been delisted or have been threatened to be delisted from designated securities exchanges
- Services of pre-authorized lawyers for optimal litigation management and access to leading law firms renowned for arming companies with the right defence strategies
- First dollar e-Discovery consultant services to help companies develop strategies if faced with a request to produce electronically stored information both before and after a covered claim arises
The AIG Advantage
- Multi-year reporting period for protection against covered claims years after a prospectus issuance
- Retroactive coverage for the offering or listing, including but not limited to the road show
- Tailored prospectus liability coverage for those involved in the offering or listing
- Value-added extensions of coverage to include management liability liberalization and fiduciary liability extensions
- Fewer exclusions than traditional D&O policy – no exclusions for personal injury, bodily injury and property damage, pension liability and compensation, and labour liability