AIG UK updates D&O coverage for Brexit

AIG UK, a subsidiary of American International Group, has updated its directors and officers (D&O) policies regarding residency and repatriation costs associated with Brexit.

The addition to the policy covers costs not paid for by the company for both legal challenges in the event of permanent residency applications being rejected before Brexit, and the subsequent challenges to repatriation orders posts Brexit.

Executives who are citizens of the EU and who are covered by AIG UK’s D&O cover whose applications for permanent residency within the UK are rejected prior to Britain leaving the EU will have their legal costs met to challenge the decision.

Legal costs for UK nationals seeking permanent residency in a member state of the EU being rejected will also be covered.

The updated cover will also deal with legal costs for executives living in the UK and EU who fight a repatriation order as a result of Brexit.

AIG UK said that should the legal challenge to the repatriation order be unsuccessful, the addition will also cover reasonable relocation costs of repatriation, including moving expenses, travel fees and unpaid school fees, for the executives and their direct family members.

The cover will be added at no additional cost and with no deductible.

Anthony Baldwin, chief executive officer of AIG Europe and AIG UK said: “At AIG we are committed to innovating for our clients to support them during periods of uncertainty. While the outcome of the discussions between the UK and the EU are unknown, this addition to existing contracts, which will be implemented at no additional cost, will give our clients peace of mind during a period of potential change.”