Issue 4 | January 2007
Product Highlights: MANAGEMENT GUARD
The idea
A large portion of the Greek Market is composed of Small and Medium Enterprises. These entities mainly need infidelity cover but are also interested in D&O liability insurance to some extent. The general D&O policy does not fully tally with insurance requirements of Small and Medium unlisted companies that are less exposed to shareholders claims. Thus, we 've decided to launch ManagementGuard, a more suitable product for this type of enterprises that combines D&O and "Loss of Money" (Infidelity) Cover.

Target Market
Target Market includs Small and Medium enterprises that fit the following criteria:
  1. Private - non listed Commercial Companies
  2. Activity : worldwide excluding NA
  3. Maximum Annual Turnover : € 50 mil
  4. Clean loss history
  5. Companies with no financial / liquidity problems
ManagementGuard is suitable for all legal entity forms: SA (AE), Ltd (epe), ??-?? (small family entities). The product is not does not offered to Financial Institutions and Hi Tech Companies.

Limits
Annual Aggregate limit of liability is applied to the policy. Range is from € 250,000 to € 5,000,000.

Main Insurance covers
  1. D&O's liability - cover A and B : Full Limit including defense expenses
  2. Entity Cover : Full Limit including defence expenses
  3. Infidelity: Sub-limit €250.000 eel and in the aggregate
Extensions of cover
  1. Sub limit for loss of money kept on premises or in transit with a sub-limit of € 25k
  2. OH&S: Defence / investigation costs : partially carve out of BI&PD exclusion for occupational health and safety laws: sub-limit of 100k
  3. Pecuniary penalties (where permitted by law): sub limit €10k
  4. Pollution: Defence / investigation costs for insured persons only (not the Company): sub-limit € 100k
  5. Moral damages: sub-limit € 250k
  6. Heirs, Estates, Legal Representatives, Spouses
  7. Outside Directors
  8. New Subsidiaries
Deductibles
Level of Deductible is relevant to the annual turnover of the company. Deductibles are applied to:
  • D&O Cover B
  • Entity Cover
  • Employment Practices Claims
  • Fidelity Claims
Rating Methodology
A rater has been developed based mainly on the annual turnover and the limit of liability.


Copyright © 2007 American International Group, Inc. All rights reserved.