AIG UK has unveiled a new product that it says is aimed at enabling UK-based European expatriate executives, as well as expat Brits, to breathe a little easier ahead of Brexit, as it is designed to cover potentially significant personal costs associated with the UK’s departure from the EU.
The product is actually an add-on to AIG’s Directors’ & Officers’ (D&O) policies, AIG said, in announcing its new “Brexit insurance”. It is designed to cover certain costs that the insured employees’ companies would not normally take care of, such as funding a legal challenge, in the event that the employee’s permanent residency application is rejected pre-Brexit, or any subsequent challenges to repatriation orders post-Brexit, according to AIG.
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, AIG noted.
The D&O policy add-on will also cover legal costs for UK nationals if their application for permanent residency in a member state of the EU is rejected, AIG said.
Should any legal challenge to a Brexit-related 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”, AIG said.
The cover is to be added at no additional cost and with no deductible.
AIG Europe and AIG UK chief executive Anthony Baldwin said the new cover reflected AIG’s approach to innovation at times of uncertainty for clients.
AIG Europe and AIG UK are part of New York-based, NYSE-listed American International Group, (AIG).