Lockton has announced the launch of a package of risk management solutions called “Enterprise Disruption Contingency Insurance designed to help companies cope with previously ‘uninsurable’ risks.”
Lockton said the coverage “offers an innovative ‘umbrella solution’ for such grey area risks as loss of intellectual property rights, inability to manufacture or distribute a product because of another organization’s product recall, regulatory risks, and information technology network disruptions or suspensions.”
Emily Freeman, Executive Director in Lockton’s Global Risks team in London explained that while “insurance underwriters have traditionally focused on mainstream property and casualty risks,” this can leave “many of the exposures surfacing for today’s enterprises uncovered. Enterprise Disruption Contingency Insurance provides customized coverage for risks that many risk managers and executives have found uninsurable previously.”
The coverage is supported by “key London insurance market syndicates,” and has capacity up to $75 million. The policy language is customized to the needs of individual companies.
“The aim is not to offer an all-inclusive solution for every conceivable supply chain or infrastructure risk,” noted Ian Harrison, Partner with Lockton’s Global Risks team in London. “We work with risk managers to focus on key areas of vulnerability and areas where redundant systems or business contingency planning alone do not provide sufficient safeguard. It’s a true collaboration between the client, broker, and underwriter.”
The Enterprise Disruption Contingency Insurance program also includes an innovative risk workshop with the covered company and key suppliers and vendors.
In conjunction with the launch of the new coverage Lockton has prepared a detailed report on Enterprise Disruption Contingency Insurance that describes the issues and challenges in detail, which is available free of charge on Lockton’s Web site.
Source: Lockton
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