Over the past several years there has been a heightened and growing concern on the part of the general public as well as corporate executives about the damage inflicted by acts of political terrorists. The WTC attack, Philippino insurgencies, ETA bombings in the Basque region, the destruction of the Central Bank in Colombo, Sri Lanka, and other terrorist acts occurring throughout the world have focused world-wide attention on the threat of terrorism.

Acts of terrorism and sabotage against corporate facilities have potentially far-reaching political and economic effects. The bombing of the World Trade Centre in New York City is estimated to have cost approximately USD 700 million in disrupted business in the first week alone and the LTTE terrorist attack on Sri Lanka's only international airport severely disrupted international trade for several weeks. As politically motivated terrorism and sabotage generates more and more media coverage, businesses owned by foreign companies will find themselves increasingly targeted.

AIG's Property Terrorism and Sabotage Insurance has been specifically designed to cover the sabotage, terrorism, mutiny, rebellion, insurrection and coup d'etat (excluding war and civil war) risks faced by multinational companies operating in countries where these risk are normally excluded from standard insurance programmes. Coverage for strike, riot and civil commotion can be included by endorsement.

COVER
Cover is provided for the following incidents on a primary, excess, or reinsurance basis:
• Sabotage- Deliberate subversion that causes damage or destruction of property.
• Terrorism- Unlawful use of violence against persons or property to further political objectives.
• Mutiny- Willful resistance by members of legally constituted, armed or peacekeeping forces acting in concert against a superior officer.
• Rebellion- Organised and open resistance, by force and arms, to the laws or operations of a government, committed by its citizens.
• Coup D'etat- Overthrow of an existing government by a group of its citizens or subjects.
• Insurrection- Violent rising of citizens or subjects in resistance to their government.

Cover Includes:  
 
• Property Damage
• Business Interruption
• Contingent Business Interruption

Cover Options
• Mobile Equipment War
• Strike, Riot, Civil Commotion
• Crisis Fund

CLIENT PROFILE
Corporations with operations in high risk countries. 
 
UNDERWRITING CONSIDERATIONS
A variety of factors will be considered including:
• Type of industry
• Property/Business Interruption Values
• Country Exposures
• Security measures
• Total values
• Claims history

Product recall situations present real threats to manufacturers; maintaining key business relationships, restoring production and protecting cash flow is absolutely vital. Skilful handling of a recall not only minimises any damage caused by a faulty product, but also demonstrates reliability and professionalism to important wholesale and retail connections - which will be essential components when the time comes for speedy redistribution and remarketing of the product.

Third party and products liability insurance may cover legal liabilities for injury or damage, but they will not usually cover the costs of recalling a faulty product. Considerable costs can be incurred in recalling products and in rebuilding public confidence. The chain of events triggered by a recall, whether voluntary or compulsory, can include a drop in sales, loss of customers' confidence, loss of hard-won retail shelf space and loss of critical supply contracts.

AIG Recall Insurance can protect businesses from the devastating effects of such recalls; covering the key expense areas and also providing the expertise of RQA, Hill & Knowlton or other independent recall consultants to guide the company through the critical first few weeks of a product recall.

COVER
The insurance covers loss arising out of the recall of a product as a result of:
• Accidental omission, introduction or substitution of a component or substance;
• Error in the design, manufacture, packaging, blending, mixing, compounding, labelling or storage;
provided that the use of the insured product has resulted in or would result in bodily injury or property damage.

Cover Includes :
• Communication (radio, TV, Internet, ads.)
• Shipping from purchaser, distributor or user
• Overtime and additional personnel costs
• Storage costs and cost of disposal
• Redistribution
• Independent Security, PR or recall Consultants (no deductible)

Optional Cover
• Rehabilitation Expenses to restore the product to projected sales levels or market share
• Restoration, Repair or Refund Expenses
• Loss of Net Profit
• Loss of Gross Profit
• Third Party Recall
• Product Extortion
• Government Recall Containment

GEOGRAPHICAL SCOPE
• Worldwide

Customer Profile
• Non-component finished goods manufacturers in the following sectors:
• Toys and child related products
• Sports and recreational equipment
• Packaging and containers
• Garden and agricultural equipment
• Tools and cleaning fluids
• Household appliances and equipment
• Heating and cooling systems
• Furniture, fixtures including construction materials

UNDERWRITING CONSIDERATIONS
A variety of factors will be considered when evaluating insurability and determining premium, including:
• Revenue of the insured
• Product type
• Packaging
• Past incidents
• Crisis management / recall plans
• Geographic markets
• Quality control

Kidnap and extortion are a very real and growing threat in today's world. As many as 12,500 kidnaps are reported each year in over 40 countries, mainly in Latin America, Russia and Asia, with the average ransom payment doubling in the last four years and some payment demands exceeding USD 50 million. Whilst the most vulnerable companies are those that have employees based or travelling overseas; organisations which have high profiles, handle large amounts of cash, or work with sensitive information or technologies can be attacked as well.

AIG MEMSA’s Corporate Kidnap and Ransom/Extortion Insurance not only protects against financial loss but also provides the services of Clayton Consulting, leading crisis management and security consultants, to manage incidents on the policyholder's behalf.

COVER 
• Kidnap / Alleged Kidnap
• A seizure or detention of an insured person for the purpose of demanding ransom moneys.
• Extortion
• Payment demands following a threat to injure, or kill an Insured Person; damage property; contaminate products; divulge trade secrets or destroy electronic data by computer virus.
• Wrongful Detention
• Involuntary confinement by a government entity or insurgent organisation.
• Hijack
• Illegal holding under duress of an Insured Person while travelling on any aircraft, motor vehicle or waterborne vessel.

Cover Includes: 
• Ransom Monies
• Loss in-transit of payment
• Related expenses: salary, personal financial loss, medical costs, rest & rehabilitation, travel & accommodation, loan interest, reward, interpreter, forensic analysis, other reasonable & necessary expenses, recall expenses, business interruption etc.
• Consultant Costs
• Judgement, settlements and defence costs
• Death or Dismemberment arising from a covered incident
• 24 hour emergency response help line

Cover Options:
• Evacuation and repatriation
• Child abduction

CLIENT PROFILE   
• Any company with employees either travelling to, or based in, overseas countries, particularly Latin America, Asia, Eastern Europe and Africa.
• Cash rich or high profile companies operating in Europe or overseas.
• Manufacturers or retailers of consumer goods.

UNDERWRITING CONSIDERATIONS
A variety of factors will be considered when evaluating insurability and determining premium, including:
• Type of industry
• Revenue of the Insured
• Country of residence
• Travel patterns of employees

Food, drink, cosmetics, pharmaceuticals and tobacco products are susceptible to contamination, both accidental and by deliberate interference through malice for political or financial gain. Such incidents are increasingly common and, when they occur, attract media interest which can have a disastrous impact on the public's confidence in the affected product. Considerable costs can be incurred in both recalling and replacing the damaged product as well as in rebuilding public confidence.

The AIG Companies are the leaders in the US market for Contaminated Products Insurance. Coverage includes recall costs, loss in profits and rehabilitation costs following either accidental or malicious contamination. It also provides crisis management planning and loss prevention services through specialist consultants.

COVER
The program consists of three parts: Accidental Contamination, Malicious Tampering and Product Tamper Extortion of the insured's products.
Accidental Contamination (ACI)
Any accidental or unintentional contamination, impairment or mislabelling of an Insured's product which occurs during or as a result of its production, preparation, manufacture, packaging or distribution; provided that the use or consumption of such product has resulted in or would result in a manifestation of bodily injury, sickness, disease or death of any person within 120 days after consumption or use.

Malicious Tampering (MPT)
Any actual, alleged or threatened, intentional, malicious and wrongful alteration or contamination of the Insured's product so as to render it unfit or dangerous for use or consumption or to create such impression to the public, whether caused by employees or not.

Cover Includes: 
• Business Interruption (lost of gross profit)
• Recall Costs
• Rehabilitation Expenses
• Consultancy costs
• Extortion Costs

CONSULTANTS
• RQA/RSSL for Accidental Contamination
• Clayton Consultants for Malicious Tampering
• Hill & Knowlton for Public Relations

CLIENT PROFILE
• Companies from the following sectors
• Food
• Beverage
• Tobacco
• Cosmetics
• Pharmaceuticals

UNDERWRITING CONSIDERATIONS
A variety of factors will be considered when evaluating insurability and determining premium, including:
• Revenue of the insured
• Product Type
• Numbers production plants & lines
• Loss History
• Crisis management / recall plans
• Quality control