Lockton and Kiln launch intangible risk policy

Lockton and Lloyd’s insurer Kiln have launched a new intangible risk policy to insure uninsurable risks for global companies.

The new insurance programme is a multi-peril insurance policy that addresses key areas of risk that were completely uninsured or 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 programme addresses four main perils:

• Reputational harm;
• Inability to sell products which depend upon intellectual property;
• Computer network failure; and
• Outsourcing disruption or supply chain interruption.

Emily Freeman of Lockton’s privacy and global technology practice said: “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.

“Rather than focusing on physical buildings or inventory, the Lockton intangible risk oolicy recognises the real value of reputation, computer networks, and intellectual property as a driver of revenue production and investment value.” 

Kiln enterprise risk division underwriter Tom Hoad added: “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.”