Public Directors and Officers Liability
Private and Non-Profit Directors and Officers Liability
Side-A Match Edge (SAME) Endorsement
Traditional ABC D&O (primary and excess): up to $50M Side-A: up to $100M
Varies by segment
Minimum Attachment Point
Varies by nature of insured
None for Side-A
Varies by product and industry
Executive Edge, Private Edge, Portfolio Select, Side-A Select (as filed and accepted by each state; the Side-A Edge form may continue to be used in the interim, with “upgrade” endorsements available to include the most significant Side-A Select features)
Additional Product Eligibility
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.
Today’s directors and officers face ever greater risks of personal liability in executing their corporate responsibilities. Increased regulatory scrutiny, public demands for individual accountability, more frequent shareholder litigation, rising defense and settlement costs, and expanding bankruptcy exposure all contribute to a very challenging environment for both public and private company executives. Traditional D&O insurance may fall short of providing full protection. AIG’s new Side-A SelectSM policy fills the gaps in coverage with numerous market-leading enhancements.
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.
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.