AIG UK has announced an addition to its D&O policies that will cover costs not paid for by the company for legal challenges in the event of permanent residency applications being rejected pre Brexit. The insurer says its new policy will also cover the subsequent challenges to repatriation orders post Brexit.

Executives that are citizens of the EU covered by AIG UK’s D&O cover whose applications for permanent residency in the UK are rejected prior to the termination of the UK membership of the EU will have their legal costs met to challenge the decision. The addition will also cover legal costs for UK nationals if their application for permanent residency in a member state of the EU 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.

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. Should the legal challenge to the 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 says cover will be added at no additional cost and with no deductible.

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