American International Group, Inc. announced Thursday that it is now offering globally up to $100 million in limits for Side A directors and officers liability insurance.
Side A insurance responds when indemnification is not available for individual directors and officers to pay the costs of defending and resolving legal actions against them. This can happen when a company becomes insolvent, wrongfully refuses to indemnify, or is otherwise prohibited from indemnifying directors and officers. Side A coverage can also fill in coverage gaps that may occur in a large D&O program.
Companies can now meet their Side A needs by significantly reducing the number of insurance carriers and policy layers necessary for adequate coverage, creating a more efficient D&O insurance structure, AIG said.
“Too often, settlements are delayed or even increased when customers wait for several insurance carriers to agree on the resolution of a D&O claim,” said Michael Smith, President of AIG Global Financial Lines in a statement. “AIG is pleased to provide our clients expanded capacity to build one tower to avoid multiple coverage positions from different carriers. This is a clear benefit when resolving a significant claim.”
The expanded $100 million capacity is available in addition to primary Side A limits found in AIG’s D&O policies that also cover corporate entities (Side A/B/C policies).



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