Administrators, managers and directors of any company, regardless of its size or activities, carry significant responsibilities in relation to the way they conduct themselves, and justify the trust placed in them. This may result in claims against them for actual and alleged breach of duty, neglect, misstatements, errors and omissions.

Taking the pain out of investigation

There is a growing number of governing bodies or authorities who can investigate a company, and today, more attention is focused to smaller companies. Even if an individual is not yet personally under investigation, immediate expert legal guidance can help, and perhaps stop the situation from becoming more serious.

Shared responsibility

As directors and managers between them are jointly and severally liable, an error on the part of one can have financial and personal consequences for the others, who may have acted completely correctly. Strong cover, that ring-fence the cover individuals can receive, can help build the confidence required to be able to work together.

Personal and professional responsibility

Actions against the company and its management can involve a high degree of personal liability for the individuals. With potential penalties that range from hefty fines, all the way to disqualification and possible imprisonment, the need for an immediate and effective response to any threat is clear.

Defense costs, damages

Including punitive and only exemplary damages, as well as pre and post judgment interest on a covered judgment or award, and settlements for “Wrongful Acts.”

Investigation and regulatory crisis events

Legal fees and expenses of the Insured Person for investigations into the affairs of the Company (no physical attendance to hearing is required).

Excess limit protection

Additional Limit for Policyholder Directors when the Limit of Liability, all other applicable management liability insurance and all other indemnification for loss available have all been exhausted.

Outside directorship

Automatic coverage is provided for outside directorships in place at Inception Date and new outside directorships commencing during the Policy Period, provided they do not relate to financial institutions or US-listed business. 90 days automatic coverage is provided for new outside directorships commencing during the Policy Period that is related to financial institutions or US-listed companies, during which time the Insured can apply for an extension of cover.

Bodily injury and property damage defense costs

Applies where a claim is made against an individual insured for bodily injury or property damage for extra solution; including health and safety and manslaughter defense costs.

Assets and Liberty

Expenses provide a daily allowance for the Insured Person’s domestic expenses during a period of 12 months following any asset freezing order which prevents access to the Insured Person’s own funds. It includes bail bond and directory disqualification.

Public relations expenses

Reasonable fees, costs and expenses incurred of public relations consultants retained to mitigate the adverse or potential adverse effects of Insured Person’s reputation resulting from a claim.

Extradition costs expenses

Reasonable fees, costs and expenses incurred in any extradition proceedings or related appeal.

Company securities

Automatic cover for existing securities and secondary offerings outside USA (50 percent market cap restriction on secondary offerings removed).

Company employment practices breach

Losses arising from employment practices related claims.

Initial offering, listing or Trading of Securities

Automatic 30-day cover for losses arising from.

Secondary Offering of Securities

Losses arising from existing Securities.

Automatic new subsidiary

New restriction on automatic cover for new subsidiaries: where a new subsidiary has total assets representing more than 50 percent of the consolidated assets of the Policyholder, or has US-listed securities, 60 days’ automatic cover only is provided, during which time the Insurer may issue an offer for further cover.

Discovery period

Automatic 90 days discovery period (i. Additional Premium of 50 percent in Insurer declines to offer renewal terms; ii. Additional Premium of 150 percent if Policyholder declines to accept renewal terms).

Emergency costs

Pre-approved defense costs for all claims (up to 10 percent of the Limit of Liability).

Management liability

Covers for the liabilities caused by the action or the inaction of the directors and officers.

Corporate liability

Coverage for company pollution defense costs, breach of contract, third-party liability, identity fraud, and crisis event.

Employment practices liability

Pays the loss of the Company resulting from any claim alleging an employment practices breach.

Investigations and regulatory crisis events

Reasonable fees, costs and expenses, incurred for the principal purpose of representing an Insured Person, with the insurer's prior written consent.

Corporate manslaughter

A gross breach of duty of care causing the death of a person, whether alleged against an Insured Person or a non-profit entity.

Bodily injury and property damage defense costs

Bodily injury, sickness, disease, death or emotional distress of any natural person; or damage to, destruction, impairment or loss of use of any property.

Emergency costs

Coverage for defense cost incurred before written approval is obtained from the insurer.

Civil fines and penalties

Any pecuniary fines or penalties of a civil or administrative nature imposed on an Insured Person by an official body as a direct result of such person acting in an Insured Person capacity.

Extradition costs and public relations expenses

Reasonable fees, costs and expenses incurred by any Insured Person with the insurer’s prior written consent.

Court attendance

Rates per day for each day on which attendance in court by an Insured Person is required in connection with any covered claim.

Tax Liability / Tax Status Costs (NFP)

Reasonable fees, costs and expenses incurred by any notn-profit entity with the insurer’s prior written consent.

Claims should be notified in writing to AIG’s Claims department.

Notice should include:

• How, when and where the alleged Breach of Duty took place
• Names and addresses of any witnesses
• Nature and location of any injury or damage

Potential claims or circumstance should also be notified to AIG.

The Insured must record the specifics of the claim and the date the Insured received it and send AIG copies of all demands, suit papers, and other legal document that the Insured receives as soon as possible.