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A range of specialist products designed to meet the needs of Financial Institutions

A sector with unique challenges

In a difficult economic environment, businesses in all sectors face challenges.  Many financial institutions face additional pressures generated by increased regulation, robust capital and lending criteria, and a global drive to improve disclosure, increased transparency and enhance shareholder protection.

AIG takes a specialist approach

This is why the specialist liability needs of financial institutions and financial service providers are addressed by our dedicated team. Their brief is to stay abreast or ahead of developing regulation reform so that our products can be constantly revised to provide appropriate insurance cover for emerging areas of risk.

Who is it for?

All financial institutions, including banks, hedge funds, venture capital firms, fund managers, building societies, insurance and investment management companies.

What is covered?

Professional services insurance on a civil liability basis for the financial institution, all its employees and others for whom it is vicariously liable.

Market

All financial institutions including Banks, Building Societies, Insurance Companies, Hedge Funds, Fund Managers, Investment Managers, Stockbrokers, Venture Capital firms and Finance Companies.

Features & Benefits

  • CorporateGuard Civil Liability is comprehensively defined. Wrongful acts comprise any act, error or omission arising out of the provision of services by an insured or anyone for whom they are liable
  • Protects the company and its subsidiaries including those created or acquired during the policy period
  • Includes anyone for whose acts the insured are responsible, including full, part time or temporary employees and approved persons of the company and its subsidiaries
  • Automatic cover for domestic partners, administrators and executors also provided

Cover

Extensions available

  • Bilateral discovery period offered if the policy is not replaced
  • Automatic cover for vicarious liability
  • Insured persons entitled to up to £200 per day to attend court as a witness in connection with a claim
  • Automatic cover for defamation claims
  • Automatic cover for civil liability arising from the destruction, damage, loss, erasure or mislaying of documents

For financial institutions; Covers fraud, dishonesty, theft, forgery and third party computer and funds transfer fraud. Also includes cover for identity fraud and payment of loss investigation fees.

Features & Benefits

  • Covers wrongful acts of employees including dishonest, fraudulent and malicious acts
  • Erroneous transfer of funds (sub-limit of GBP 1 million) provided for
    Covers legal liability for stockbroker’s inability to complete a transaction due to fraud, loss of documentation, or being deceived as to the identity of a person (sub-limit of GBP 1 million)
  • Cash letter coverage and the associated expenses in reconstructing cancelled items
  • Costs of verifying, reconstituting or removing computer programs which have given rise to a payment under the policy
  • Bilateral discovery period offered as standard if the policy is not renewed
  • Damage to office premises and contents due to malicious mischief

Cover

  • Premises and transit cover on an all risks basis, including ATMs, safe deposit boxes and loss of subscription, redemption, conversion or deposit privileges
  • Fraud cover for documents of value, securities, instructions, advices, faxes, currency and corporate card applications
  • Electronic crime cover for computer fraud (including communications via the internet or by telephone), telephone toll fraud and computer virus damage
  • Less onerous war and terrorism exclusion
  • Bilateral discovery period offered as standard if the policy is not renewed

Our CorporateGuard D&O cover for Financial Institutions recognises the increasing risks faced by companies of all sizes and their officers. It provides formerly bespoke cover automatically, with added value services and fewer restrictions. Clients have the comfort of knowing that one of the most experienced claims teams in the industry is working on their behalf if a claim is made.

Market

We target all sizes and types of financial institutions including banks, hedge funds, insurance companies, building societies, fund managers, investment managers, stockbrokers, venture capital firms and finance companies.

Our policies are designed to protect past present and future directors, officers, employees acting in management or supervisory capacity, shadow directors, outside entity directors, spouses, administrators and executors of insured's estates.

Features & Benefits

  • Pre-investigation costs and expenses sub-limit – recognising the new, more robust regulatory environment we work in
  • Notifications – no condition precedent
  • International jurisdiction clause - more favourable terms and conditions in international jurisdictions if AIG has a broader, locally admitted policy
  • Full policy limit Extradition Cover – includes a sub-limit for an accredited crisis counsellor and/or tax advisor and a public relations consultant  

Cover

  • Pre-investigation cover for retaining legal advisors to represent an Insured Person in connection with a Regulatory Crisis Event (sub-limited)
  • Defence costs, damages, and settlements for “wrongful acts”
  • Legal fees and expenses up to the full policy limit for attendance at any investigation into the affairs of the company or an individual insured
  • Employment Practices Liability cover (including emotional distress) for individuals
  • £1million limit per non-executive director
  • Emergency pre-approved defence costs
    Assets and liberty costs cover (including bail bond and director disqualification)
  • Automatic cover for new non-US subsidiaries and entities valued within 25% of total group assets and are not Investment Vehicles
  • 6 Year run off for retired directors if the policy is not renewed or replaced  

Specific, purpose-built worldwide employment practices cover for the entity, individuals, and outside entity directors.

Market

Mid to large-sized companies

Features & Benefits

  • Covers legal costs, expenses and compensation awards for a wide range of employment practice violations
  • Broad definition of employment practice violation including actual or alleged violation
  • Advancement of Defence costs relieves any short-term financial hardship when an employee or the company becomes involved in expensive litigation
  • Includes cover for part-time, seasonal and temporary employees
  • (Similar) Cover (also) provided to directors asked to take outside board positions

Cover

  • Worldwide Cover
  • Public relations expenses for damage to reputation - sublimited
  • Legal fees and expenses for any official investigation by the Equal Opportunity Commission, Commission for Racial Equality and Equal Employment Opportunity Commission
  • Advancement of Defence costs

Protection for the trustees, the employees, the employer company and the fund itself against claims brought against them for actual or alleged wrongful acts which have placed the plan’s assets at risk.

Market

All financial institutions including Banks, Building Societies, Insurance Companies, Hedge Funds, Fund Managers, Investment Managers, Stockbrokers, Venture Capital firms and Finance Companies.

Features & Benefits

  • Emergency costs of up to 10% of the limit of liability without the insurer’s prior consent
  • Automatic cover for domestic partners, administrators and executors
  • Bilateral discovery period offered if the policy is not renewed
  • Theft of plan assets and ERISA cover (optional)

Cover

  • Covers protection for the trustees, the employees, the employer company, its directors and the fund itself against claims brought against them for actual or alleged breach of duty in connection with the pension plan.
  • Automatic cover for domestic partners, administrators and executors
  • Blanket cover for all Pension and Employee Benefit Plans including automatic cover for qualifying new plans Specified Stock Ownership Plans
  • In an emergency, limited defence costs can be incurred without our prior consent

Financial protection against civil liability for investment advisory services, directors and officers liability insurance in respect of both the investment fund and investment manager; as well as crime cover against the dishonesty of employees and third parties.

Market

Investment management companies, investment funds, hedge funds and investment Trusts. includes automatic cover for approved persons, outside entity directors, domestic partners, administrators, and executors. Automatic new fund and subsidiary cover, provided the fund or subsidiary in question meets pre-determined criteria.

Features & Benefits

  • Automatic vicarious liability cover
  • Emergency costs of up to 10% of the limit of liability without the insurer's prior consent
  • Insured persons are entitled to up to GBP 200 per day to attend court as a witness in connection with a claim
  • Kidnap response costs if an insured person is kidnapped, hijacked or wrongfully detained

Cover

  • Civil liability and defence costs arising from investment advisory services
  • Civil liability, directors & officers cover and defence costs in the management or operation of an investment fund
  • Directors and Officers liability and defence costs
  • Crime - protecting the business and the funds from direct financial losses suffered as a result of employee infidelity or third party crimes  

Covers companies against securities claims arising from offerings of a company's securities. The policy can cover equity or debt issues, both initial and secondary. Cover is for the company and its directors, officers, employees and selling shareholders.

Market

Financial institutions involved in capital raising via issue of a prospectus.

Features & Benefits

  • Focused policy for non-US liability exposures
  • Liabilities relating to a prospectus/listing particulars
  • Non-US exposures on all UK or other world stock exchanges including 144A
  • Liabilities arising from negotiations and decisions made in connection with the offering including any road shows
  • Policy Period is aligned to the duration of the exposure period. In the UK, up to 6 years
  • Advancement of defence costs
  • AIG can now offer Public Offering of Securities protection for investment funds’ transactional exposures
  • Pre-wrongful act full limit for Investigations
  • Non-recindable policy  

Market

Private Equity and, Venture Capital Managers, and related investment funds and partnerships with domestic and international exposures.

Features & Benefits

  • Fund run-off management liability cover
  • Representations and warranties cover
  • Regulatory crisis event cover
  • Crisis containment cover
  • Self reporting cover
  • Worldwide Insured v Insured cover (excluding the U.S.)

Cover

1.1. Management Liability
Providing protection for insured persons (past, present and future) should they breach any of the duties that they owe in relation to the company or fund. The policy will also reimburse the company when they indemnify such insured persons.

1.2. Outside Directorship Liability and Outside Directorship Run-Off Liability
The policy provides protection for outside entity directors (past, present and future) sitting on the board of an outside entity at the specific request of the insured.

1.3. Civil Liability
The policy provides protection for the insured for any error or omission whilst providing venture capital or private equity services.

Insured includes, past, present, and future directors, officers &  trustees, outside entity directors, non-executive directors, shadow directors, senior accounting officers, advisory board members, employees, consultants, approved persons, members of internal audit committees, general council members and general partners.

Covers directors of a hedge fund against claims for breaches of duty in that capacity.

Hedge Fund One is a stand-alone directors and officers liability policy specifically for hedge funds which indemnifies individuals where the fund cannot and reimburses the fund for indemnities it does pay. Retiring insureds will receive six years’ run-off cover. Additional insurances cover corporate governance and disclosure breaches; costs for regulatory and compliance investigations; key man insurance and public relations expenses.

Market

Hedge funds and their directors.

Features & Benefits

  • Hedge Fund One is a stand-alone directors and officers liability policy specifically for hedge funds
  • Indemnifies individuals where the fund cannot and reimburses the fund for indemnities it does pay
  • Covers costs of an Insured’s representation at an official investigation
  • Express extradition cover for directors and officers plus related costs for public relations, psychological counselling and tax advice
  • Broader range of personnel are covered, including the directors and officers of the fund manager, general partner, in-house counsel and compliance officers

Cover

  • Breach of Duty of Care including:
    Negligent Act, Error or Omission
    Misstatement
    Misleading Statement
    Breach of Confidentiality
  • Breach of Contract occasioned by Negligence
  • Fraud and Dishonesty
  • Infringement of intellectual property rights
  • Defamation
  • Collateral Warranties
  • Fitness for Purpose
  • Duty to Warn
  • Asbestos – up to £250,000
  • Sudden and Accidental Pollution – up to £1 million