New insurance product offers ‘Enterprise Disruption Contingency Insurance’
Lockton, the world's largest privately held insurance broker, 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 innovative umbrella solution for operational 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 of 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 key 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 continuity planning alone do not provide sufficient safeguard. It's a true collaboration between the client, broker, and underwriter."
•Date: 21st April 2011 • Region: World •Type: Article • Topic: Operational risk