American International Group is coming out with new Brexit coverage in the U.K for anxious executives, barely weeks after the fateful British vote to pull out of the European Union.
AIG division AIG UK will handle the product launch, which amounts to an addition to its existing Directors & Officers policies. It is with no additional cost and also no deductible.
AIG’s Brexit cover amounts to planning for worst-case scenarios, even through Great Britain hasn’t yet officially begun the Brexit withdrawal process.
For executives who are EU citizens covered by AIG UK’s D&O Cover, it would address costs a company doesn’t handle involving legal challenges if an executive’s permanent residency application is rejected before the United Kingdom pulls out of the European Union. Any legal costs relating to U.K. nationals whose application for permanent residency in an EU member state is rejected, post-Brexit, would also be addressed (specifically, post-Brexit repatriation orders).
“While the outcome of the discussions between the U.K. and EU are unknown, this addition to existing contract, which will be implemented at no additional cost, will give our clients peace of mind during a period of potential change,” Anthony Baldwin, CEO of AIG Europe Ltd. and AIG UK explained in prepared remarks.
The U.K. voted on June 23 to leave the European Union, setting off financial market turmoil and uncertainty around the world.