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Upgraded to deliver even better protection
We’ve updated our Directors & Officers liability (D&O) package – PrivateEdge – in line with the changing risk environment. Our enhanced product provides extensive protection, covering a wide range of risks that individual directors and officers face in businesses of all sizes. It also protects the business itself.
A D&O claim is a daunting experience and having an experienced claims team in your corner to offer guidance and reassurance is essential. AIG has one of the industry’s most experienced D&O claims teams handling thousands of D&O claims every year.
New optional modules allow PrivateEdge to be tailored to the needs of individual clients. Optional modules include: Security Response, Employment Practices Liability, Pension Trustee & Employee Benefits Liability and Crime.
Our enhanced PrivateEdge policy has significant improvements. New covers added include “Any One Claim” limits for all sections, wider protection for the company comprising of Health & Safety investigations costs, fees for intervention and company costs of defending prosecutions from a regulatory body.
All PrivateEdge policyholders are entitled to complimentary legal advice from 3 of the UK’s top legal firms. With a 24 telephone hotline followed by scheduled call-back with a specialist lawyer, clients have access to expert advice on any issues they feel might potentially lead to a claim under the policy.
Included with PrivateEdge is a complimentary Credit Management System, AIG Trade+, to allow clients to analyse their customers’ outstanding payments, see who is performing well, where there might be danger signals, and if they wish purchase trade credit insurance for individual customers.
PrivateEdge is designed for a wide market:
Extensive protection for individual directors if they’re sued, investigated, threatened or prosecuted because of their management of a company.
Cover for costs of representing, coaching and preparing individual directors for any investigations and prosecutions by regulators or trade and professional associations.
Cover for individual director’s damages and settlements – such as damages awarded against a director to creditors after insolvency or a director’s liabilities for corporate tax.
Cover for directors’ legal and expert costs to defend themselves against any actions to disqualify them, or to extradite them. This also includes PR costs to protect the director’s reputation.
Covers costs associated with fighting any proceedings to confiscate a director’s property or to freeze their assets. Cover includes paying school fees, mortgage and utility payments for the director.
Cover for retired directors for actual or alleged wrongful acts against them whilst acting as directors – even if their successors do not maintain D&O cover.
Protection for the company itself. Reimbursing costs for defending its directors and covering the company’s costs to defend itself.
“End-to-End” health and safety cover for the company to fund its preparation, representation and defence at HSE prosecutions and investigations. New PrivateEdge even covers the HSE’s “fees for intervention”.
Cover for the company’s expert and legal costs to defend any claim seeking fines or penalties, e.g. from regulators, as well as specific management liability claims for injury, property damage and pollution.
Cover for the company’s costs of defending breaches of contract claims – written or oral such as claims from customers or suppliers.
Covers PR costs to minimise reputational damage to the company after any negative publicity following any claim on the policy or after a crisis event such as loss of intellectual property or conviction of a director.
Employment Practice Liability module covers damages, settlements and defence costs for a wide range of employment practice violations. We cover claims from employees past and present, from visitors like customers or suppliers and the costs of employment investigations (like equal opportunities or racial equality).
We cover the liabilities not just for pension trustees but also of individuals administering any company employee benefit or welfare plan. Regulators demand a rapid response and one cover highlight is the emergency defence costs so that companies and trustees can get the legal assistance to respond immediately to the regulator, even if they can’t contact us first.
Our optional crime module protects the client’s balance sheet from fraudulent or dishonest activities carried out by employees or outside third parties, or collusion between internal staff and external parties such as suppliers. Cover includes the costs of specialist pre-investigative services to help clients establish and quantify their loss.
The new Security Response service from PrivateEdge should become an integral part of client strategies to protect their people, property, brand and reputation. The service provides 24/7 access to expert security consultants who will provide advice prior to, or respond immediately in the event of any threat or crisis.
All PrivateEdge policyholders are entitled to free telephone legal advice from a top UK law firm on any issue that they feel might potentially lead to a claim under their PrivateEdge policy.
The legal helpline is backed up by a comprehensive library on the new PrivateEdge website of guides and templates on a wealth of HR and Health and Safety issues identified as being most valuable to businesses and regular bulletins on topical and emerging issues.
New PrivateEdge policyholders are entitled to a free credit management system to give them greater visibility of their receivables portfolio and their individual customer’s credit risk. The system is fed by a regular weekly upload of the clients invoice data and its intuitive dashboards display the amounts and the age of debt, so clients can see historical trends, receive auto alerts for payments “past due date” see where they are “over trading” and also where there is headroom to trade more.
A D&O claim can be an extremely difficult experience for clients, but with AIG no matter what kind of D&O claim you face we’ve seen something like it before. We’ve included a few of our claims insights here.
TYPE OF CLAIM: Employment Practice Liability
AMOUNT PAID: Over £350,000 including defense costs
Our insured dismissed an employee following a disciplinary process. The employee challenged the dismissal and brought a claim for unfair dismissal in the Employment Tribunal. It is alleged that he was subjected to workplace bullying following protected disclosures that he made regarding the directors.
View more adapted scenarios based on actual PrivateEdge claims.
Few people have a clearer perspective on the emergence and development of D&O claims than those who actually handle them. This insight is drawn from the experiences of our D&O claims adjusters.
It’s not just directors that get drawn into D&O actions, claims can include others such as “de facto” directors, managers and supervisors. To be safe we cover all kinds of directors and all company employees in PrivateEdge as well as spouses, partners and heirs.
Claimants can take a “scattergun approach” claiming huge initial sums (e.g. six or seven figures) from an array of individuals. This can be a shock to the managers and supervisors involved. We’re used to these tactics and fund an expert defence for clients that otherwise may not have been affordable.
The first time in a courtroom and hearing one’s rights read can be a very intimidating experience. This is why we make sure that clients are thoroughly prepared, e.g. mock interviews to help directors rehearse the most important points in their defence and prepare them for tough questioning.
False and even malicious accusations against our clients have to be vigorously defended and they can be intensely stressful and time consuming for the individuals involved. We know many find it to be a great reassurance knowing they have the biggest and the best in their corner fighting for them.
Being a great director isn’t the same as being a good defendant. Many are strong-willed individuals who want to proactively lead situations, but in an “inquisitorial” environment they must tread carefully with expert guidance, particularly when facing difficult allegations by skilled investigators or prosecutors - which is funded by new PrivateEdge.