AIG's Fire Fighters: Extra Risk Insurance

While American International Group Inc. plans to sell some of its business units to pay off the debt from its taxpayer bailout, the company is holding on to its private firefighting force, the Wildfire Protection Unit.

The service operates on the logic that it's cheaper to prevent homes from burning down in forest fires than it would be to pay out claims.

"We're here because budgets for local fire companies have been cut so deep that they cannot provide adequate protection," said Sam DiGiovanna, who heads the team of contractors. "It's a shame, but it's a reality."

It's a significant issue for Orange County and the rest of Southern California.

"We started the service here in Southern California because of the ever-present danger of fire, because of the close proximity of our clients and because of the value of the insured assets," said Todd Triano, vice president of AIG's loss prevention department, which operates the fire service. "The service was created to mitigate damage, not to replace fire departments."