They can build a hurricane resistant enclosure to house a client's valuable art collection. When a client's home is threatened by a wildfire, they can swoop in to prevent damage. They can even help clients avoid being kidnapped.

Who are these guys?

They're the Private Client Group (PCG)-the high-end private insurance arm of the insurance giant known as AIG, but recently renamed AIU Holdings Ltd. PCG is in a niche market that services clients with large holdings, providing one of the few options for high-net-worth clients looking to protect art, jewelry and other property and wealth of immense value.

"What sets us apart is really the availability, as very few companies can sell the level of coverage successful individuals require," says Charles Williamson, the private Client Group's president. 

The level of service provided by the Private Client Group is reflected in the premiums paid by their clients. The average total annual premium per customer, including multiple policies, is $20,000. The largest individual annual premium paid is $2.4 million.

Considering the type of property being insured, and the payouts involved if there are damages or losses, these premiums can be well worth it, according to insurance specialists.

"What was good for the Chevy for years just isn't good enough now that you have a Benz," says Craig Stoker, president of Stoker Financial Services, an independent insurance brokerage in Sacramento, Calif.
Even still, many high-net-worth families neglect their insurance needs, he says.

"They think, my insurance with a mass-market insurer has been fine. But a high-end insurer like AIG pays the replacement costs, not just the stated value of the home," Stoker says. "Wait until the first big, complicated claim.
Then they realize why they needed specialized coverage."

The Private Client Group counts as its clients between 30% and 40% of the Forbes "Richest Americans" list. Among its specialties is the insuring of high-end homes, automobiles, art and wine collections, musical instruments, yachts and an array of miscellaneous items. But the insurance policies extend beyond just property. The company also devotes much of its business to protecting its wealthy clients against lawsuits. The Private Client Group, for example, has attorneys who specialize in employment practices liability-cases in which clients are sued by their hired staff.

The Private Client Group fills a niche on the upper rungs of the insurance market. Individuals and families with assets north of $5 million can't just call up a conventional insurance company and purchase coverage, experts say. 

Mainstream carriers such as State Farm and others who sell directly to consumers tend to cap payouts at $5 million. High-net-worth clients are instead directed to high-end insurers, usually with the aid of an independent insurance broker.

"Certainly this is not high volume, but you are talking about a very high service and technical capability business," says broker Bruce Gendelman of Gendelman Insurance Services. "What brokers such as myself do is to find the right fit for clients. That might [result] in a bidding war for their business among PCG competitors like Chubb and Firemen's Fund."

In the high-end business, service doesn't end after a client signs on the dotted line, industry experts say. The Private Client Group, for instance, provides direct support for the safe storage and transportation of valuable client property.
In an example of how exotic insured items can be, PCG's Katja Zigerlig spoke of a recent case in which a client needed to move a sculpture that was made out of food items, including soup and butter.

"We see a lot of contemporary art, and those pieces can be a challenge to transport," says Zigerlig, who specializes in fine art, jewelry and wine. "So after a long back and forth, we designed a generator to keep the art piece refrigerated to the proper degree in order to allow it to be moved."

Zigerlig also spoke of the need for constant appraisals, particularly in the event of a market or economic downturn. "We see art being used as alternative investments and we are also seeing a direct consequence of [Bernard] Madoff with some clients needing to sell cherished pieces of their collections," she says. "So we make certain they know the value of their possessions."

The company also offers insurance coverage that protects art collectors who purchase fakes or forgeries, or if they're the victim of other types of financial fraud, including Ponzi schemes and forged checks. Even donations to fraudulent charities and losses from telemarketing scams can be reimbursed, up to a limit and minus policy deductibles, according to PCG.

PCG's loss prevention services also cover personal safety. For clients who travel to areas with a high rate of kidnappings, either for pleasure or business, PCG will provide instructions on how to travel safely and on what areas to avoid. Ransom insurance coverage can provide up to $50 million in ransom payouts, in addition to compensation for loss of income and other expenses.

Liability coverage is also offered to clients who serve as board members for non-profit groups, who can often be targeted by lawsuits. In one case, a client who served on the board of a residential coop was named in a discrimination and defamation lawsuit by someone who was denied entry into the coop.

Coverage is especially important in this area because not-for-profit organizations typically operate on tight budgets and carry only minimal liability coverage, according to PCG.

Beyond providing sound coverage, one of the goals of PCG's programs is to minimize the likelihood of property damage altogether.

"I have a client who has a number of homes, including one in which PCG subcontracted to install a water-flow device which is activated when something out of the ordinary occurs, shutting the water off," says Richard Stein, a Denver-based advisor. "A central pipe burst in the house and could have flooded, but ultimately the damage was quite minimal and easily handled. "

The company's wildfire protection unit, now in its fifth year, provides clients in California and Colorado with damage mitigation services. The crew will assess a client's home, examine any hazards and, if necessary, apply a fire retardant around the perimeter of the home.

Similarly, the Private Client Group's hurricane protection unit carries out damage prevention programs in Florida, New York and New Jersey. This component of service reflects the high toll hurricanes have taken on property owners in recent years. Insurance companies have paid an estimated $40.6 billion on 1.7 million claims for damage to homes, businesses and vehicles in six states from Hurricane Katrina, the largest loss in the history of insurance. Nine of the 10 costliest hurricanes in U.S. history have impacted Florida, and seven of those top 10 storms occurred in 2004 and 2005.

"In advance of hurricanes, they have protective devices built around heavy art objects," says Gendelman. "What also is important is the day-after team which comes out to a house with equipment to minimize damage. This also helps build loyalty."