NEW YORK--(BUSINESS WIRE)--Jan. 7, 2002--American International Group, Inc. (AIG) has announced that AIG Private Client Group, a division of the American International Companies, is offering employment practices liability coverage to protect individuals against allegations of sexual harassment, wrongful termination and discrimination made by nannies, housekeepers, gardeners, personal assistants and other domestic help employed by the insured.

While employment practices liability insurance, first introduced by the AIG member companies, has been an important coverage for businesses for many years, AIG Private Client Group is now pioneering the application of this coverage to address the employment practices exposures facing high net worth individuals.

The employment practices liability coverage is offered automatically to AIG Private Client Group excess liability policyholders. The policy provides coverage of up to $250,000 for settlements and judgements awarded as a result of employment-related allegations, as well as the full cost of defense. Coverage is provided for up to five employees, including part-time employees, working more than 15 hours a week. In addition to employment practices liability coverage, AIG Private Client Group excess liability policyholders also receive Employment CrisisFund(TM), which provides up to $25,000 to cover the fees of an approved public relations firm to help policyholders minimize damage to their reputation.

``According to the Bureau of Labor Statistics, there are nearly one million people employed in private residences across the United States. At the same time, new laws have been enacted protecting the rights of the employee, and employment-related complaints and jury awards have dramatically increased,'' said Ross Buchmueller, President, AIG Private Client Group. ``AIG Private Client Group's unique employment practices liability program was designed specifically for employers of private help, especially high net worth individuals with significant personal assets at stake.'' In addition to employment practice liability coverage, AIG Private Client Group offers families with private staff further protection through workers compensation insurance and access to pre-employment background checks.