Lexington Insurance Company, a member company of American International Group Inc. (AIG), has launched Tax Interruption Insurance, a new product that responds to the financial losses a municipality suffers when sales, property, or other scheduled tax revenue streams are disrupted as a result of physical loss or damage to a commercial location.
“A municipality can suffer significant loss of tax revenue when a business located within that municipality experiences a property loss. Tax Interruption Insurance fills a vital need for municipalities that cannot afford to remain vulnerable to this exposure,” said Kevin Kelley, chairman and CEO of Lexington Insurance Company.
A new stand-alone coverage for public entities, Lexington’s Tax Interruption Insurance is designed for municipalities with populations of up to 50,000. Coverage is triggered when an insured peril causes direct physical loss or damage to real or personal property at a business location specified on the policy, which results in that business’ non-payment of sales, property, or other scheduled tax revenue to the municipality. Specified locations can range from local manufacturing plants, to retail shops and super stores. Municipalities can purchase aggregate policy limits of up to $20 million.
For more information on Tax Interruption Insurance, contact Bernie Fitzgerald, Lexington’s director of New Programs, at (617) 772-4594 or e-mail AIRisk2@aig.com.
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