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Directors & Officers Liability 

Coverage 

Public Directors and Officers Liability

  • Offers entity coverage for Securities Claims
  • Optional coverage may be available for investigations of entity by enforcement body, when related to a Securities Claim
  • Broad coverage for individuals – including Pre-Claim Inquiry coverage to address costs incurred by individuals in responding to inquiries by the Company or an Enforcement Body
  • Provides sub-limited coverage for investigative costs arising out of a shareholder derivative demand
  • Applies to covered wrongful acts committed anywhere in the world
  • Automatically adds qualified acquired subsidiaries as insureds
  • Provides liberalization to apply certain more favorable terms and conditions from local AIG policies to claims in foreign jurisdictions

Private and Non-Profit Directors and Officers Liability

  • Offers broad coverage for both entity and individuals
  • Applies to covered wrongful acts committed anywhere in the world
  • Automatically adds qualified acquired subsidiaries as insureds
  • Provides liberalization to apply certain more favorable terms and conditions from local AIG policies to claims in foreign jurisdictions
  • Sub-limited coverage available for anti-trust exposures
  • Offers additional limits for individuals when costs of a claim cannot be indemnified
  • Private D&O: Roadshow coverage
  • Private D&O: Pre-Claim Inquiry coverage to address costs incurred by individuals in responding to inquiries by an Enforcement Body or the Company
  • Private D&O: Provides sub-limited coverage for investigative costs arising out of a shareholder derivative demand

Side-A Edge

  • Our leading Side-A difference-in-conditions (DIC) policy form that combines follow form and liberalization approaches
  • Includes only one exclusion (conduct exclusion), reinstatement options, coverage for civil fines and penalties, Pre-Claim Inquiries, and more

Side-A Match Edge (SAME) Endorsement

  • Available for clients who purchase primary D&O and Side-A from AIG
  • Enables the Side-A coverage provided by the primary D&O policy to match the breadth of coverage provided by the Side-A DIC policy
  • Provides insureds with the same best-in-class Side-A DIC coverage from the first dollar primary throughout the entire tower
  • Allows for consistency of coverage across the tower to avoid claims conflicts resulting from multiple carriers
  • SAME is now available even if another carrier is acting as the lead Side-A carrier; insureds can now maintain relationships with existing Side A carriers and still leverage the SAME structure by adding a layer of Side- A from AIG at any attachment point
     

Available Limits 

Traditional ABC D&O (primary and excess): up to $50M Side-A: up to $100M

Minimum Premium

Varies by segment

Minimum Attachment Point

Varies by nature of insured

Minimum Retention 

None for Side-A
Varies by product and industry

Forms

Executive Edge, Private Edge, Portfolio Select; Side-A Edge

Targeted Classes/Industries/Geographies

All

Additional Product Eligibility

• Side-A  
• Fiduciary    
• Fidelity    
• KR&E    
• Cyber

For the past 50 years, AIG has offered financial protection for directors and officers against legal challenges, allegations, and regulatory investigations. There’s a lot at stake: from personal reputations to personal assets, to career-damaging disqualification or even loss of liberty.

Our seasoned team of claims and underwriting professionals provide insureds with the experience of managing some of the highest-profile cases in the industry for entities of all sizes: Fortune 500® companies to non-profit organizations; multinational corporations to privately- held enterprises.

Recent Side-A enhancements directly address the increased exposures directors and officers face today: greater risk of company insolvency calling indemnification into question; increased regulatory scrutiny of individuals, as evidenced by commentary from newly appointed SEC Chairman and Attorney General; and increased shareholder derivative claims. In addition to our recent enhancements, we are now making our Side-A Match Edge® (SAME) endorsement available to AIG primary D&O insureds regardless of AIG’s Side-A attachment point, enabling the Side-A coverage provided by the ABC D&O tower to match the breadth of coverage provided by the Side-A DIC tower. 

Class Action Lawsuit:

A consolidated class action lawsuit was filed against an internet company alleging violations of the federal securities laws (Section 10b of the Securities Exchange Act). The company allegedly recorded undisclosed “round-trip” sham transactions with another internet company to inflate revenue. A corporate derivative suit was also filed and aggressively pursued
while discovery was stayed in the securities class action. The case settled for $38 million. In addition, the company spent over $20 million in defense costs and derivative investigation costs.

Regulatory Allegations:

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.

 


AIG has been writing D&O cover worldwide for over 40 years and handles 40,000 new D&O claims a year throughout the world.

AIG is the world’s #1 ranked D&O insurance provider by market share, proving that companies and organizations – including 80%+ of the Fortune 500 – trust us to protect their directors and officers.

AIG’s unique partnership between claims and underwriting drives market-leading coverage innovation – ensuring that our D&O policy is continuously updated to address today’s emerging exposures of entities and individuals.

Our seasoned team of 300 claims professionals provides direct access to some of the nation’s most experienced attorneys to provide valuable strategic assistance in litigating with even the most formidable plaintiffs’ attorneys. These partnerships, coupled with our level of experience and expertise, facilitate prompt case resolution and the best possible claim outcome.

 

Interested in Directors & Officers Liability Insurance?