2014

Lockton Launches New Intangible Risks Insurance Program Broker teams up with Kiln to insure "uninsurable risks" for global companies

LONDON and KANSAS CITY, Mo., July 18, 2013 /PRNewswire/ -- Global companies face a challenging array of risks from reputation and computer system interruption to disruptions of supply chains or outsourced functions. These previously "uninsurable risks" can now be insured through a new customized program developed by insurance broker Lockton and Lloyd's insurer Kiln. It is called the Lockton Intangible Risk Policy.  

(Logo: http://photos.prnewswire.com/prnh/20090415/CG99351LOGO)

"These big boardroom risks previously fell outside of traditional insurance  because the cause of loss was not a physical event or did not result in physical injury or damage to tangible property," said Emily Freeman of Lockton's Privacy and Global Technology Practice in London. "Rather than focusing on physical buildings or inventory, the Lockton Intangible Risk Policy recognizes the real value of reputation, computer networks, and intellectual property as a driver of revenue production and investment value."  

Lockton has created this insurance program with a major Lloyd's insurer Kiln, to create a multi-peril insurance policy that can be adapted to meet specific client needs.  It addresses key areas of risk that were completely uninsured or only inadequately addressed by traditional insurance.  The policy is focused on first-party loss of net income and extra expenses.  Insurance capacity to at least $50 million is available through the primary lead underwriter and excess markets. 

The key perils in the program include: 

  • Reputational Harm:  The cause of loss is adverse traditional or social media coverage that drives down revenue or sales. It can be sparked by data breaches, breach of fair labor laws and environmental damage, key person disgrace, loss of certification/accreditation, product safety or quality failure, or other perils agreed with the underwriter.
  • Inability to sell products which depend upon Intellectual Property. This peril addresses the income and expense consequences of losing an intellectual property dispute, including the costs of work-arounds and licensing fees.  
  • Computer Network Failure: Causes of loss include computer attacks, operational or administrative errors, accidental damage to hardware or digital electronic assets, political risks, and terrorism.  What is critical about this coverage is that the limits apply not just to internally run systems but includes contingent business interruption and extra expense from outsourcing or cloud services. 
  • Outsourcing Disruption or Supply Chain Interruption:  This coverage is highly tailored to individual clients but can include seizure or nationalization by governments and political risks to supply chains.  

Lockton and Kiln walk clients through a customized underwriting process to determine the risks and claims settlement processes in advance. Lockton has already developed customized policies for several global companies under the program.                             

"Businesses operating today know that their profits are heavily dependent on intangible factors such as brand, intellectual property, computer networks and supply chains. This new coverage is a direct response to intense demand from risk managers for insurance innovation in these areas," says Tom Hoad, an Underwriter in the Enterprise Risk division at Kiln.

"As a forward thinking and innovative insurer, we welcome this approach by Lockton in helping clients to transfer these modern day risks," says Paul Culham, Active Underwriter of the Enterprise Risk division at Kiln.

The Lockton Intangible Risk Policy is available through Lockton offices globally.  

About Lockton
More than 4,900 professionals at Lockton provide 35,000 clients around the world with risk management, insurance, and employee benefits consulting services that improve their businesses. From its founding in 1966 in Kansas City, Missouri, Lockton has attracted entrepreneurial professionals who have driven its growth to become the largest privately held insurance broker in the world and 9th largest overall. Independent researcher Greenwich Associates has awarded Lockton its Service Excellence Award for risk management for large companies. For four consecutive years, Business Insurance has recognized Lockton as a "Best Place to Work in Insurance." To see the latest insights from Lockton's experts, check Lockton Market Update.

About Kiln (Primary Underwriter)
Kiln is a forward thinking international insurance and reinsurance underwriting group with a portfolio of specialist risks. Since 1962, it has built its business on the strength of its underwriting and its relationships.

Kiln is part of the AA- rated Tokio Marine Group. Its UK operating company, R J Kiln & Co Limited, manages four syndicates at Lloyd's and is one of the largest agencies trading in the Lloyd's insurance market. In addition to the UK, Kiln has offices in Hong Kong, Singapore, France, Germany, Belgium and Brazil and operates in China through Lloyd's Insurance Company (China) Ltd based in Shanghai.

A recognised leader in each of the seven main business areas in which it operates: property and special lines, marine, reinsurance, accident and health, aviation, life and enterprise risk, Kiln syndicates benefit from a security rating of 'A+' (Strong) assigned to Lloyd's by Standard & Poor's. For more information, please visit: www.kilngroup.com

SOURCE Lockton



RELATED LINKS
http://www.lockton.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.