AIG member company Lexington Insurance Company has launched OpShield, a new property terrorism endorsement that provides coverage for losses incurred when a civil or military order related to a terrorist act or threat impedes business operations.

The OpShield endorsement offers a maximum aggregate of $25 million as a sublimit to the Property Terrorism policy. OpShield coverage is triggered when a civil or military order takes effect within a specified distance around the insured’s business, and may be extended to respond when an order is issued for certain areas surrounding non-owned locations, such as shipping ports or railways.

Additionally, the endorsement can be extended to include coverage for the operational impact on an insured’s business when a civil or military order impedes their ability to work with third party business relationships such as suppliers or vendors.

Civil or military orders imposed following a terrorist attack or threat can have serious ramifications for businesses. For example, the closing of major roads, ports, or airways can leave a business inaccessible to customers or unable to receive vital supplies. OpShield responds to this exposure by covering the business interruption losses or extra expenses an insured may suffer, said Kevin Kelley, chairman and CEO of Lexington Insurance Company.

OpShield is the newest addition to Lexington’s Homeland Protector, a portfolio of property and casualty insurance products and services that address terrorism and homeland security-related exposures.