Executive Edge®


Executive Edge®

The personal risk associated with being an officer or director of a publicly-held company has vastly changed over the last decade. From the risk of having to return compensation under Sarbanes-Oxley to the threat of criminal prosecution and incarceration in a foreign jurisdiction, executives face a higher level of personal liability today than ever before.

Executive Edge®, an innovative broad form management liability insurance policy for public companies, provides cutting edge responses to the concerns of today’s executives.

Coverage Highlights

    • Responds to the uncertainties of corporate indemnification 
    • Extends coverage for investigations of individual insureds 
    • Reassures executives that their coverage cannot be jeopardized by the behavior of others 
    • Integrates key extensions for personal asset and reputation protection as part of the executive protection suite 
    • Provides liberty cost coverage and expanded investigations cost coverage for legal services incurred by insured persons detained or imprisoned abroad due to their business activities, even absent a claim 
    • Provides express coverage for corporations, without a sublimit, for the cost of seeking dismissal of derivative suits 
    • Subject to a sublimit, provides coverage for the company’s cost of investigating derivative demands and derivative suits
    • Ensures the most favorable terms and conditions from local AIG policies are applied to claims in foreign jurisdictions 
    • Available on PortfolioSelectSM

Claims Scenarios

    • A regulatory body targeted a healthcare company for violations of federal statutes. Senior level executives were asked to cooperate with the investigation in terms of document production and interviews with the regulators. Costs associated with the individual inquiries exceeded $750,000. After the company disclosed the matter to the public and paid a fine associated with the violations, shareholders filed both a traditional securities suit and a derivative action. Costs to investigate the derivative action and settle the related actions exceeded $15 million.
    • A federal securities class action suit was filed against a manufacturer alleging violations of the federal securities laws, sections 10(b), 10(b-5), and 20(a) of the Securities Exchange Act. The plaintiffs alleged that the manufacturer and two of its officers and/or directors artificially inflated the price of the stock by making materially false and misleading statements and omitting material adverse information, including: (1) that the marketing and distribution of some products was severely undermined by antitrust lawsuits precluding the manufacturer from continuing with its profitable pricing structure, (2) that the manufacturer’s historically profitable domestic business was eroding, and (3) that due to the deterioration of its business model, the manufacturer violated its debt agreements. The case settled for a total of $13 million, $10 million in damages and $3 million in defense costs.stock by making materially false and misleading statements and omitting material adverse information, including: (1) that the marketing and distribution of some products was severely undermined by antitrust lawsuits precluding the manufacturer from continuing with its profitable pricing structure, (2) that the manufacturer’s historically profitable domestic business was eroding, and (3) that due to the deterioration of its business model, the manufacturer violated its debt agreements. The case settled for a total of $13 million, $10 million in damages and $3 million in defense costs.

* The scenarios summarized above are offered only as examples and are not intended to represent an actual claim or insured.  Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy.



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