Lockton is launching a package of risk management solutions called Enterprise Disruption Contingency Insurance designed to help companies cope with previously “uninsurable” risks.
Lockton’s Enterprise Disruption Contingency Insurance offers an “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.
“Insurance underwriters have traditionally focused on mainstream property and casualty risks, which can leave many of the exposures surfacing for today’s enterprises uncovered,” said Emily Freeman, executive director in Lockton’s Global Risks team in London. “Enterprise Disruption Contingency Insurance provides customized coverage for risks that many risk managers and executives have found uninsurable previously.”
Supported by London insurance market syndicates, Lockton can offer initial insurance capacity of up to $75 million for this program. 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,” said 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.”
The Enterprise Disruption Contingency Insurance program also includes an innovative risk workshop with the covered company and key suppliers and vendors.
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