The heightened risk of being named in securities litigation has lead corporate counsel to face increasing liability exposures from a variety of claimants. These liabilities may result from legal services provided on behalf of and to their employers, as well as pro bono and moonlighting services. Because the role of corporate counsel continues to change, AIG Executive Liability, a division of the property casualty insurance subsidiaries of American International Group Inc., enhanced its Corporate Counsel Premier (CCP) insurance policy to protect the personal assets of corporate counsel and their staff.
CCP, which is available in all 50 states, with policy limits of up to $25 million, now provides legal liability protection to corporate counsel and legal staff in a manner that complements many directors and officers (D&O) liability policies. Additionally, CCP has a number of enhancements as part of the standard policy, including:
* Incorporation of D&O terms and conditions to reduce the risk of gaps in coverage, particularly for securities claims;
* Non-rescindable coverage for corporate counsel and their staff;
* An expanded definition of claim;
* A reduced insured vs. insured exclusion.
“Sarbanes-Oxley changed the role of corporate counsel to one of gatekeeper, resulting in their being named more frequently in SEC actions and personal liability suits,” said Lisa Butera, president, Professional Liability Division, AIG Executive Liability. “In response to rising concern among corporate counsel, AIG Executive Liability redesigned Corporate Counsel Premier to better protect the individuals who serve in these vital corporate positions.”
Source: AIG, www.aigexecutiveliability.com
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