Lexington Insurance Company, a member of American International Group, has launched Outsourcing Protector, a new property insurance product designed to help companies address the risks of domestic and overseas outsourcing.
Outsourcing Protector, an endorsement to Lexington’s multi-peril property policy, extends Lexington’s property coverage to business interruption losses and extra expenses incurred as the result of a fire or other covered causes of loss that occur at the outsourcing vendors’ facilities.
Further, when an insured has purchased terrorism and/or cyber-related coverages in its property policy, the endorsement will indemnify such perils. Customers may also expand coverage to include an insured’s business and personal property located at vendor locations, both foreign and domestic.
Companies today are outsourcing a wide range of business functions, from call centers, to web services, to accounting duties, said Kevin Kelley, chairman and CEO of Lexington Insurance Company.
Yet, many of these companies are unaware that their traditional property policies do not respond to all outsourcing-related risks. The Outsourcing Protector suite of coverages specifically addresses the emerging risks that are not covered by traditional insurance policies, thereby providing protection from the significant loss of income that can occur.