How To Work For Aig.Com

Transcription

1 CLAIMS MORE PROTECTION FOR GLOBAL EXPANSION PREVENTION AND CRISIS PortfolioSelect SM for Non-Profit Entities PortfolioSelect SM helps provide the peace of mind non-profit entities need to successfully embrace opportunities for growth, research, investment, thought leadership, and innovation. The next step in the evolution of our market-leading product offerings, PortfolioSelect is a modular policy form that delivers a flexible and efficient insurance solution. Clients can now combine Management Liability, Cyber Liability, and specific Professional Liability coverages to fit their individual needs, conveniently delivered in one policy. PortfolioSelect offers convenience and simplicity with: One Application, One Policy: One application and one policy for multiple coverage lines make PortfolioSelect both comprehensive and efficient Universal Language: With cutting edge terms from our Edge suite of products, brokers and clients benefit from consistent policy wording and endorsements that can be customized for specific risk profiles Flexible Limits: With the option to separate or share limits across multiple coverage lines, PortfolioSelect provides maximum flexibility for insureds [email protected] Visit: Contact: Your Insurance Broker 1

2 CLAIMS MORE PROTECTION FOR GLOBAL EXPANSION PREVENTION AND CRISIS Products available in PortfolioSelect Click on the product name to learn more about each coverage Directors and Officers Liability for Non-Profit Entities Enhanced with automatic coverage for leased employees, volunteers or independent contractors, expanded definition of a claim to include non-monetary demands or injunctive relief and more. CyberEdge Security and Privacy Liability, Event Management, Network Business Interruption, Cyber Media, and Cyber Extortion coverages provide an additional layer of defense to a company s IT department and the support needed when confronted with a sensitive data breach. CrimeGuard Choice Crime Liability protection for companies against the dishonest acts of their employees as well as forgery, safe burglary, and computer fraud on a global basis. Employment Edge Employment Practices Liability coverage that addresses the wide range of employment practices exposures that companies face, including those arising from workplace bullying and employee use of the internet and social media. Fiduciary Liability Insurance Edge Fiduciary Liability coverage for directors, officers, employees, and employers who are alleged to have breached their fiduciary duty or made mistakes in the management or administration of employee retirement and benefit plans. Kidnap and Ransom Liability Coverage to protect business travelers and their families against the crisis events of kidnap-for-ransom, extortion, threat, or disappearance that can occur both in the U.S. and abroad while traveling or residing away from home. Corporate Counsel Premier Protects the personal assets of corporate attorneys, as well as their employer s balance sheet, in claims alleging professional malpractice. The policy protects not only past, present and future corporate counsel, but also legal staff and contract attorneys. [email protected] Visit: Contact: Your Insurance Broker 2

3 CLAIMS MORE PROTECTION FOR GLOBAL EXPANSION PREVENTION AND CRISIS Claims Management We have assembled a seasoned team of claims professionals who are experienced in managing some of the highest-profile cases in the industry, for entities of all sizes from Fortune 500 companies to non-profit entities; multinational corporations to privately-held enterprises. Our centralized in-house operation allows us to facilitate prompt case resolution and the best possible claim outcomes for clients. Why Clients Can Trust Us: Industry Reputation for Technical Excellence: Many of our claims professionals have over 10 years of industry experience dealing with the toughest, most complex claim issues Unparalleled Capabilities and Resources: Long-established relationships with premier legal firms, mediators, investigators, forensic specialists, crisis communications experts, and other best-in class resources around the country Optimal Litigation Management: We provide clients access to a network of the nation s leading law firms armed with the right defense strategies to deal with even the most formidable plaintiffs attorneys Unique ediscovery Benefits: For companies involved in litigation, a unique program assists them and their defense counsel in developing an effective strategy for handling the arduous and expensive practice of collecting electronically stored information Efficient Claims Service: A centralized claim intake department (c-claim) serves as a single point of entry and gatekeeper for all claims, facilitating their submission, acknowledgement, and timely processing Ongoing Collaboration: Claims professionals are co-located with underwriters giving them a more complete understanding of customers business needs, ensuring claims handling is consistent with underwriting intent and facilitating prompt decision-making [email protected] Visit: Contact: Your Insurance Broker 3

4 CLAIMS MORE PROTECTION FOR GLOBAL EXPANSION PREVENTION AND CRISIS More Protection as a Company Expands Globally As companies are increasingly multinational in nature, we offer Passport, a global service platform, as a simple and efficient way for companies to secure coverage that is aligned with local laws, regulations, and customs worldwide, including locally-admitted policies. It s a simple, effective means with far-reaching global advantages, including: Access to local experts in underwriting and claim and litigation management Easy to understand coverage, coordinated worldwide Flexible limit options, including separate aggregate limits or a single aggregate worldwide limit 1 1 If additional limits are required or requested for a specific country or account, additional premium may be charged. A per policy issuance fee is charged in addition to premium. [email protected] Visit: Contact: Your Insurance Broker 4

5 CLAIMS MORE PROTECTION FOR GLOBAL EXPANSION PREVENTION AND CRISIS Prevention and Crisis Management We use our years of experience, preventative solutions, innovative technologies and specialized professionals to help our customers...whether that is a prompt payment, skillful litigation defense or proactive tools to reduce risk. For example, if a PortfolioSelect insured has purchased the relevant coverage section: Before a PortfolioSelect insured risks suffering from a cyber breach, we deploy our CyberEdge Resolution Team to join IT staff and provide best practices on how to prevent a breach from occurring As soon as a crisis occurs, PortfolioSelect insureds receive the immediate resources to hire a pre-approved public relations firm, before news of the crisis hits the wire If an employee of a PortfolioSelect insured is kidnapped or receives an extortion threat, we send out our expert security consultants to help bring them safely home [email protected] Visit: Contact: Your Insurance Broker 5

6 Directors and Officers Liability for Non-Profit Entities Non-profit entities face a wide array of exposure as they look to balance the need to further their mission, with the need to adapt to the results-driven focus required by today s economy. Non-profits face greater competition for donations and grants while at the same time their directors and officers are under ever increasing regulatory scrutiny. Securing the right insurance to fully protect a non-profit and its leaders can be challenging. A single claim can sap cash flow and disrupt the entity s mission and put the personal assets of the entity s leadership at risk as well. Directors and Officers Liability for Non-Profit Entities (D&O) protects non-profit entities against a wide range of potential claims. Coverage enhancements respond to emerging risks and offer state of the art protection that extends to the entity s existing non-profit and for-profit subsidiaries and the individuals who run them. Extends coverage to non-profit subsidiaries created or acquired during the policy Provides coverage for any for-profit entity acquired during the policy period whose assets are less than 20% of the Named Insured Provides the flexibility to add affiliated organizations by endorsement Protects a broad range of individuals including: Trustees, directors, officers, employees, leased employees, independent contractors and volunteers1 operating on behalf of an organization Estates, heirs, spouses or domestic partners of individuals in claims arising from that individual s service to the organization Executives of the insured organization serving at the request of the insured organization, trustee emeritus, governor or an equivalent management position of any non-profit organization, excess of insurance and indemnity provided by the outside entity Ensures the most favorable terms and conditions from local AIG policies are applied to claims in foreign jurisdictions Offers additional limits for individuals when costs of a claim cannot be indemnified by the company A doctor and her medical office filed suit in South Carolina state court against a hospital in connection with the hospital s decision to enter into an exclusive contractual arrangement for the provision of anesthesiology services with a different medical group. The doctor was a disappointed bidder of the said exclusive contract, and was a member of the medical staff at the hospital. She alleged that the selection of an exclusive anesthesiologist/pain management physician at the hospital effectively eliminated her privileges without a fair hearing in violation of hospital bylaws. The plaintiffs alleged breach of contract, breach of fiduciary duty, violation of Unfair Trade Practice Act, unfair methods of competition, tortuous interference with existing and prospective business/ contractual relations, and denial of due process. The plaintiffs also sought both monetary and injunctive relief. The hospital argued that it had a number of legitimate reasons for pursuing an exclusive contract in order to ameliorate the quality of service to patients. It also argued that it did not have to undergo a request-for-proposals process, but did so to be fair to plaintiffs and other potential candidates. The judge granted defendants motion for directed verdict on all counts except for civil conspiracy count. Resolution: A jury returned a verdict for the plaintiffs in the amount of $1,275,000 against the hospital on the civil conspiracy count. The trial judge granted the hospital s motion to reduce the verdict to $300,000. The hospital appealed the trial court s decision to send the civil conspiracy count to jury for trial. Pending the appeal, policy monies were put in escrow to cover the judgment plus interest ($637,500). In January 2006, the South Carolina Supreme Court reversed the trial court s denial for the hospital s motion for judgment notwithstanding the verdict. The Supreme Court found that a conspiracy could not exist if the conduct challenged was a single act by a single corporation acting through its directors and officer s in the scope of their employment. That being the case, the Supreme Court held that the judgment against the hospital was improper and denied the plaintiffs motion for a rehearing. Following the appeal, policy monies held in escrow were returned. 1 Coverage for leased employees and independent contractors is only provided if the organization indemnifies such individuals in the same manner as it indemnifies its own employees * The scenarios summarized above are offered only as examples and are not intended to represent an actual claim or insured. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy. 6

7 CyberEdge Add Our Expertise to Yours PortfolioSelect CyberEdge is a comprehensive risk management solution for cyber liability offered by AIG. In a rapidly changing landscape, CyberEdge helps you stay ahead of the curve of data breaches, employee sabotage and more, with our responsive guidance based on years of experience. The protection that CyberEdge provides is a valuable additional layer to the most powerful first line of defense against cyber threats a company s own IT system. Responsive Guidance Our CyberEdge teams have local presence supported by global resources to react quickly and give guidance when needed, from assessing your needs through processing your claims. You have instant access to the best and most experienced claims specialists and other strategists to advise you when you need it. The strong relationships we have with vendors, including forensic, legal, and communications, ensure rapid support. Experience We have been protecting companies against cyber risk since the late 1990s when the cyber insurance industry was in its infancy. Our team has underwritten thousands of cyber policies. Some of the largest companies and more than 20 million individuals have trusted us to help respond to some of the biggest data breaches. Constantly monitoring the cyber landscape, we stay at the forefront of the industry as cyber risks continue to evolve. Our innovation becomes your protection. Proactive Loss Control Tools to Stay Ahead of the Curve AutoShun, provides another critical layer in a company s IT defense plan. The hardware device is powered by leading-edge intelligence that isolates and quarantines bad IP addresses, blocking them from interacting with a company s network. CyberEdge RiskTool, our single, web-based platform can be tailored to meet individual risk management needs and aids with compliance, training, and security protocols to mitigate human error from causing a future breach. CyberEdge Mobile App for ipad ** combines the latest cyber news, opinion, and risk analysis with real-time updates on data breaches, delivered in a one-stop shop for cyber-related information. Security and privacy liability insurance covers third-party claims arising from a failure of the insured s network security or a failure to protect data. Insurance also responds to regulatory actions in connection with a security failure, privacy breach, or the failure to disclose a security failure or privacy breach. Event management insurance responds to a security failure or privacy breach by paying costs of notifications, public relations, and other services to assist in managing and mitigating a cyber incident. Forensic investigations, legal consultations, and identity monitoring for victims of a breach are all included. Network business interruption responds to a material interruption of an insured s business operations caused by a network security failure by reimbursing for lost income and operating expenses. Cyber extortion insurance responds to the threat of intentional security attacks against a company by an outsider attempting to extort money, securities, or other valuables. This includes monies paid to end the threat and the cost of an investigation to determine the cause of the threat. Cyber Media insurance addresses the liability faced by companies that distribute media content via their website. Coverage provided for numerous perils including copyright infringement, trademark infringement, defamation, and invasion of privacy. A university audit uncovered a data security breach involving unauthorized individuals gaining access to the student financial aid roster, which included student ID and Social Security numbers as well as the amount of financial aid each student received. AIG s cyber security specialists assisted in conducting a forensic audit which determined that more than 18,000 student records may have been compromised. AIG also helped the university select professionals from its expansive network of vendors to provide legal advice, call center services, and credit monitoring and reimbursed the university for approximately $70,000 above the retention for the vendor services. A credit card company notified a pharmacy of a suspected breach since it is a common point of purchase for fraudulent activities. The merchant was required by the credit card company to conduct a forensic investigation to ensure that its payment-processing environment was compliant with PCI-DSS. Putting its extensive experience in cyber security to work, AIG, on behalf of the merchant s payment processor, helped to conduct a forensic audit which demonstrated that the merchant was, in fact, compliant. AIG reimbursed the payment processor $11,000 for the cost of the audit. AIG also continued to maintain contact with the merchant and the payment processor to determine if any fines or fees would be levied by the credit card associations. Providing a Comprehensive Solution With CyberEdge, we help you respond to an incident better, quicker, and more systematically. A response typically requires: Computer forensics to determine the cause of an event. Compliance with the diverse notification requirements of 46 states and many other jurisdictions. Crisis management to mitigate reputational damage. Hiring legal counsel to advise your company with regard to its response to an incident. Adherence to regulatory requirements of all relevant jurisdictions. * The scenarios summarized above are offered only as examples and are not intended to represent an actual claim or insured. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy. ** ipad is a trademark of Apple Inc., registered in the U.S. and other countries. 7

8 CrimeGuard Choice Businesses are increasingly confronted with the risk of fraud and dishonesty in many forms: the manager signing off on fraudulent invoices; the contractor pilfering property from your client s premises; the intern forging credit card receipts. CrimeGuard Choice provides worldwide coverage for lost assets that you or your client suffers as a result of a dishonest employee whether it s a full-time, part-time or temporary employee, a director or officer, employee on military leave, independent contractor, student, or volunteer. Provides coverage for: Loss of money, securities, or other assets resulting from employee theft, computer fraud, forgery, fraudulent funds transfer, non-payment of money orders or counterfeit paper currency, and corporate credit card forgery Loss of money, securities or other assets a client suffers due to a dishonest employee sent to work on the client s premises Loss of employee benefit plan assets Tailors coverage for numerous fraud-related losses to a company s specific needs Activates an efficient and cooperative loss investigation and settlement process saving organizations time and money if a covered event occurs Offers a broad definition of employee that includes independent contractors and consultants Policy is written on a discovery basis Provides coverage for Agent s Theft An assistant manager at a retailer was involved in a theft scheme with approximately 30 customers. Goods were purchased for export, but never exported, and ultimately sold on the black market. The assistant manager received kickbacks for his involvement. The insured filed a claim for sales taxes that were never paid in the amount of approximately $34 million. A payroll manager was involved in a dishonest scheme and overpaid obligations for payroll taxes. When the overpayments were brought to his attention, he directed the reimbursement checks to be sent to his attention. He opened a bank account in a name similar to that of his employer and stole the reimbursement checks. The loss claimed was approximately $3 million. A group of employees at a manufacturing plant was involved in a scheme with a scrap metal dealer to underestimate the value of scrap purchased by the scrap dealer. The employees received vacations, country club memberships, and other gifts in return for their involvement. The loss claimed was approximately $40 million. * The scenarios summarized above are offered only as examples and are not intended to represent an actual claim or insured. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy. 8

9 Employment Edge Employment practices liability exposures continue to increase and take on new dimensions. Ongoing developments at the U.S. Equal Employment Opportunity Commission (EEOC), in court decisions, and in state and federal legislatures are steadily expanding exposure. In addition, the increased reliance on the Internet and social media has opened new avenues for employment liability risk that are particularly difficult for employers to manage. Employment Edge assists employers in mitigating this increase in risk with value-added services that go well beyond the typical scope of protection. Employment Edge policyholders receive the valuable tools they need to successfully adapt to the changing landscape of employers liability exposure. Extends coverage for harassment, discrimination, and other employment-related claims by employees on the Internet (on or off the job) Preserves coverage for civil claims that relate back to an EEOC or Uniformed Services Employment and Reemployment Rights Act proceeding inadvertently unreported under a prior AIG policy Expands the definition of employment practices violation to encompass a wide range of claims from workplace bullying to discrimination in violation of the Genetic Information Non Discrimination Act Covers harassment and unlawful discrimination claims brought by non-employee third parties Ensures the most favorable terms and conditions from local AIG policies are applied to claims in foreign jurisdictions Includes access to EPL Pak Premier, a market-leading loss prevention resource that has been enhanced with online tools to assist clients with regulatory compliance and best practices for employment practices liability risk management A female manager at a health club in California filed a sexual harassment and wrongful termination suit against her employer. She alleged that she was demoted and then fired after she complained to management about the harassing behavior of male managers. The jury awarded the plaintiff $2.4 million. A former male employee sued his employer in Colorado, a packaging company, for disability discrimination alleging that the company refused to allow him to return to work after he was on disability leave recovering from a brain aneurysm. The jury awarded the plaintiff $8 million: $7.5 million for punitive damages. A maintenance worker sued his employer in Massachusetts for disability discrimination and wrongful termination. The employee alleged that he was put on involuntary leave of absence and subsequently terminated after he informed his employer that he had multiple sclerosis. The jury awarded the plaintiff $286,000. The EEOC brought suit against a logistics supply chain company on behalf of three former female temporary employees and a former full time male employee for gender discrimination and retaliation in violation of Title VII of the Civil Rights Act of The EEOC alleged the three female employees were sexually harassed by a manager and were fired after they complained. The male employee was also terminated for allegedly opposing the sexual harassment. The jury awarded the Plaintiffs $1.5 million, $850,000 of which was punitive damages. * The scenarios summarized above are offered only as examples and are not intended to represent an actual claim or insured. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy. 9

10 Fiduciary Liability Insurance Edge Extensive legislation, complex litigation and an evolving economy are among the forces shifting the landscape for companies providing 401(k), pension, or welfare plans for employees. An inadvertent error in the administration of an employee benefit plan, or even the appearance of wrongdoing, can trigger litigation alleging breach of fiduciary duty against the company, directors, officers, and other employees who are responsible for plan administration. Fiduciary Liability Insurance Edge protects against the personal liability imposed upon directors, officers and employees who oversee pension and other benefit plans as well as the company that sponsors such plans. With flexible notice features, coverage for penalties under the Affordable Care Act, and expanded coverage relating to voluntary governmental compliance programs and more, Fiduciary Liability Insurance Edge gives business executives and plan fiduciaries state-of-the-art coverage in response to the unprecedented level of risk they face today. Provides advancement of loss within the retention, stepping in on covered claims when a company or plan refuses or fails to indemnify its directors and officers or employee fiduciaries for any reason Does not allow recovery by the insurer of amounts previously paid if an allegation that triggered coverage is later disproven Explicitly covers the alleged improper selection of third party service providers, including managed care service providers, with no sublimits and no exclusion for self-administered plans Protects when plaintiffs allege violations of the Labor Management Relations Act along with Employee Retirement Income Security Act (ERISA) breaches in connection with collectively bargained plans Provides flexibility in reporting governmental fact-finding investigations 1 and internal appeals of benefit denials 2 - without the risk that failure to report might trigger a denial for late notice Includes HIPAA 3 penalty coverage of $1.5 million, addressing the substantially increased potential penalties of the HITECH Act 4 Affords generous coverage for penalties under the Affordable Care Act Built in coverage for Pension Protection Act, ERISA Section 502(c) and IRS Section 4975 penalties Grants non-rescindable coverage for insured persons nonindemnified loss Includes full severability of all exclusions for all insureds Broadens voluntary compliance loss protection by paying not just fines, penalties, sanctions, fees, and expenses related to a governmental voluntary compliance program, but also costs related to the assessment or correction of a plan s non-compliance Ensures that the most favorable terms and conditions from local AIG policies are applied to claims in foreign jurisdictions Type of Claim: 401(k) Excess Fee Type of Organization: Public Company Description: The complaint contained allegations of revenue sharing, imprudent selection of investment options including offering retail mutual funds, and a unitized stock fund. Resolution: A judgment for the plaintiffs in the amount in excess of $300,000. AIG paid its policy limit of $15 million in defense costs. Type of Claim: ESOP Type of Organization: Private Company Description: Employees filed a class action complaint alleging that the conversion of a public company to a company held 100% by an ESOP created debt that crippled the company. Resolution: Settlement of $32 million. AIG paid its policy limit with a $5 million contribution towards the settlement and $5 million in defense costs. Type of Claim: Department of Labor Investigation Type of Organization: Taft Hartley Plan Description: The Department of Labor (DOL) is investigating the prudence of an investment made by trustees of a Taft-Hartley plan who are now retired. The DOL s investigation into the actions by the fund s trustees has necessitated the retention of three defense firms: one to represent the interests of the current union trustees; another for the current employer trustees; and a third to represent the interests of the retired trustees who allegedly authorized the investment at issue. Resolution: At this writing the investigation is in its early states. In addition to defense costs, in this instance, investment loss could be covered by the policy. 1 Prior to incurring defense costs for which coverage is being sought or before the investigation becomes a litigated matter. 2 Prior to any allegation of investment loss within a plan or prior to incurring defense costs for which coverage is being sought. 3 Health Insurance Portability and Accountability Act 4 Health Information Technology for Economic and Clinical Health Act1Subject to sublimits * The scenarios summarized above are offered only as examples and are not intended to represent an actual claim or insured. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy. 10

11 Kidnap and Ransom PortfolioSelect Kidnapping and extortion are significant threats to organizations and those who serve them around the world. Most vulnerable are organizations with employees based or traveling overseas, but those with high profiles or with operations that handle large amounts of cash, or that work with sensitive information or technology, are also at risk. Properly managing a kidnapping, extortion or other crisis event is essential in protecting the life and well-being of a victim as well as an organization s assets. Kidnap and Ransom (K&R) insurance protects organizations against the financial loss that can arise when an employee is seized or detained for ransom or in the face of extortion. Backed by unparalleled consultant, medical, and emergency travel assistance services, we lend organizations the experience and resources typically not provided in-house to manage and resolve these incidents successfully. Extends the definition of insured to include officers, directors and employees, their guests, relatives, and any person delivering or handling ransom money Encompasses a broad range of claims including: Kidnapping Wrongful Detention Extortion Hijacking (against persons and property) Applies coverage to employees and relatives around the clock, whether business related or otherwise Immediately reimburses the insured for expenses/ransom once a covered crisis is over and receipt of payments made are received Provides clients with unparalleled consultant, medical and emergency travel assistance services in conjunction with our service partners: Travel Guard; NYA International; and Edelman Includes access to Global SafeTravel, an easy-to-use, web-based system that enables organizations to keep their business travelers informed and up-to-date, manage, track and communicate with traveling employees, and provide them with immediate, 24/7 assistance in the event of any incident Offers 24/7 access to in-house claims personnel dedicated to K&R related claims NYA International (NYA) is a specialist crisis management and response consultancy with over twenty years of experience of helping clients manage incidents of abduction, kidnap-for-ransom, piracy, extortion, wrongful detention, malicious product tampering and other global emergencies. NYA has one of the largest teams of full-time or exclusively retained kidnap, extortion, and piracy response consultants in the industry. This enables them to guarantee their response to clients anywhere in the world. NYA s selection and training process is extremely rigorous. This ensures that our clients have access to the very highest caliber individuals at the time they need them most. NYA responds to an average of kidnap, extortion, and marine piracy incidents each year, plus a wide range of other related crises. NYA is the only response team of its kind that will deploy up to four consultants upon notification of an incident: two each to company headquarters and the incident location, providing maximum levels of support during the critical early stages of a crisis. A company sends an employee to visit Brazil and explore a new business opportunity. On the third-day of the visit, the employee is kidnapped and the company is notified that the employee is being held for a ransom of $1 million. The company immediately calls the AIG 24/7 emergency hotline and two NYA International consultants are sent to work hand-in-hand with the company s crisis management team. After five days of negotiations, the employees are released for a ransom of $500,000. The company submits its proof of loss to AIG and is reimbursed the ransom amount in full. The patriarch of a wealthy family living overseas received several calls at his office demanding he disclose documents and information about his business and send $1 million. The extortionists told the patriarch that if he did not meet their demands, they would release information about his business and/or kidnap his 18 year old daughter. The patriarch called the AIG 24/7 emergency hotline and NYA immediately deployed to the patriarch s residence. NYA provided a complete risk assessment of the patriarch s residence and business, and protocols for handling future call. NYA continued to monitor the matter, but no further calls were received. A large U.S.-based corporation received a letter at its corporate headquarters stating that if an extortion payment of $2 million is not paid within 5 days, the extortionist will detonate bombs at corporate headquarters as well as at the corporation s various retail outlets. The corporation activated its kidnap and ransom policy by contacting the AIG 24/7 emergency hotline. AIG confirmed coverage and NYA was deployed the same day to corporate headquarters. NYA provided a full risk assessment and coordinated its efforts with local law enforcement as well as the FBI. After several follow-up calls and communication with the extortionist, the FBI was able to arrest a disgruntled former employee without any further incident. The kidnap and ransom policy reimbursed the corporation over $550,000 for public relations, media, and NYA costs as well as additional security costs incurred in response to the threat, including outside security personnel, and bomb detection dogs. * The scenarios summarized above are offered only as examples and are not intended to represent an actual claim or insured. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy. 11

12 Corporate Counsel Premier Attorneys in private practice are not the only ones at risk of professional liability claims. In-house corporate counsel face the risk of being named in civil, administrative, or criminal proceedings such as: Civil or criminal actions brought by shareholders, regulators, and agencies Licensing actions by state bar associations Damages sought as a result of legal services provided to employers or others Corporate Counsel Premier protects the personal assets of corporate attorneys, as well as their employer s balance sheet, in claims alleging professional malpractice. The policy protects not only past, present, and future corporate counsel, but also legal staff and contract attorneys. Applies Directors and Officers terms and conditions to reduce potential coverage gaps Provides non-rescindable coverage for non-indemnified loss of employed lawyers and staff (Coverage A) Extends coverage to pro-bono and moonlighting services provided by in-house counsel Protects an organization s entire in-house legal team, including past, present, and future full-time in-house attorneys and their paralegals and clerical staff Encompasses a broad range of claims including: Demands for monetary, non-monetary, or injunctive relief Suits such as civil proceedings or binding arbitration Administrative proceedings, such as a judicial, administrative, or bar association licensure Employment-related claims arising from reliance on in-house legal services Offers a zero deductible and no co-insurance for nonindemnifiable loss Two external attorneys (the plaintiffs) alleged that the inhouse counsel of a publicly held corporation wrongfully accused them of conspiring with the court clerk to alter the filing date of a summons and complaint in a patent infringement lawsuit. The lawsuit was mistakenly filed a day early by the plaintiffs, but the clerk allegedly re-stamped the complaint for the next day. The in-house counsel posted a blog stating that plaintiffs wrongfully influenced the clerk to change the date. The plaintiffs filed a lawsuit against the in-house counsel for defamation of character and demanded over $2 million. After negotiations, the matter was settled for $700,000. A treasurer of a publicly held financial corporation was required to obtain a certain license from the Office of Thrift Supervision as part of his employment. When applying for the license, the plaintiff failed to mention a prior misdemeanor arrest which led to the denial of his license application which resulted in his termination. Alleging that the omission of the prior arrest on his license application was at the advice of his organization s corporate counsel, the treasurer sued his former employer as well as corporate counsel alleging negligence, negligent supervision and retention, legal malpractice, defamation/injury to reputation, and breach of contract demanding over $9 million damages plus attorneys fees and costs. The matter was resolved via mediation for $1 million. * The scenarios summarized above are offered only as examples and are not intended to represent an actual claim or insured. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy. 12

13 To learn more about PortfolioSelect: Visit: Contact: Your Insurance Broker American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. Additional information about AIG can be found at YouTube: LinkedIn: AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds American International Group, Inc. All rights reserved. 13