AIG UK has announced new directors’ and officers’ liability (D&O) cover for residency and repatriation costs associated with Brexit.
The cover will be added to its D&O product “at no additional cost and with no deductible”.
The policies would cover costs not paid for by a company for legal challenges in the event of permanent residency applications being rejected pre Brexit, and subsequent challenges to repatriation orders after Brexit.
The UK voted in a June 23 referendum to leave the European Union, although details for foreign employees’ residency, as well as many other factors, remain unclear and subject to diplomatic negotiation between London and Brussels – expected to draw on as far as 2018 or 2019.
Anthony Baldwin, CEO 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.”
AIG UK said the addition would also cover legal costs for UK nationals if their application for permanent residency within other EU member states is rejected.
“Although the outcome of discussions between the UK and EU are unclear, some expats in the UK are already seeking permanent residency to secure their right to live in the UK,” said AIG UK.
“Separately, the new addition will also cover legal costs for executives living in the UK and EU to fight a repatriation order as a result of termination of the UK’s membership in the EU,” said the insurer.
Should a legal challenge to a repatriation order fail, AIG UK said the additional cover would include relocation costs of repatriation, such as moving expenses, travel fees and unpaid school fees, for executives and family members.