Lockton, a privately held insurance broker, has launched a new risk management solutions called Enterprise Disruption Contingency Insurance, to help companies cope with previously 'uninsurable' risks.
The broker said that the new program will offer ‘umbrella solution’ for area risks such as loss of intellectual property rights, inability to manufacture or distribute a product due to another organization’s product recall, regulatory risks, and information technology network disruptions or suspensions.
The program includes a risk workshop with the covered company and key suppliers and vendors.
Lockton has claimed that it can offer initial insurance capacity of up to $75m for this program and policy language is customized to the needs of individual companies.
Lockton Global Risks team in London executive director Emily Freeman said insurance underwriters have traditionally focused on mainstream property and casualty risks, which can leave many of the exposures surfacing for today’s enterprises uncovered.
"Enterprise Disruption Contingency Insurance provides customized coverage for risks that many risk managers and executives have found uninsurable previously," Freeman said.
Lockton Global Risks team Partner in London Ian Harrison said that the aim is not to offer an all-inclusive solution for every conceivable supply chain or infrastructure risk.
"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. It’s a true collaboration between the client, broker, and underwriter," Harrison said.