Crisis Management Insurance

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

Property Damage, Business Interruption and Contingent Business Interruption are typical coverages under this policy

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 minimizes 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. It covers the key expense areas and also provides 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.

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. While the most vulnerable companies are those that have employees based or traveling overseas; organizations which have high profiles, handle large amounts of cash or work with sensitive information or technologies can be attacked as well.

AIG'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.

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.

AIG is the leader 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.