Beazley partners with Lloyd's insurers to tackle reputational risk

Specialist Lloyd’s insurer Beazley is partnering with other Lloyd’s insurers to offer an insurance and crisis management solution that helps mitigate reputational risk.

Beazley has established a Custodian Consortium at Lloyd’s to provide reputational risk coverage to US-domiciled organisations of all sizes, specifically targeting companies with up to $5 billion in revenue, including both public and private companies, and for-profit and not-for-profit enterprises.

The consortium will offer substantial limits with additional capacity initially provided by Tokio Marine Kiln and RenaissanceRe as well as Beazley’s smart tracker syndicate 5623.

Policyholders could be entitle to crisis management advice worth up to $1 million. The first $250,000 of this cover will be available on a pre-loss basis, regardless of whether a loss of revenue is ultimately recorded.

There are exclusions for cyber and product recall, systemic events or macro-economic impacts, failure of corporate strategy, and fraud or criminal acts.

Rachel Turk, focus group leader of Beazley’s London-based D&O team, said: “In an era in which news travels faster through social media, risk to hard-earned reputations is greater than ever before. Preparedness and speed of response are critical. Our policy has been designed to ensure that crisis response expertise is available, backed by the necessary funds, as soon as an incident occurs.

“By pre-agreeing the level of revenue drop that will trigger a claim at the outset with our underwriters, clients can be sure that no time will be lost in providing cover that meets their requirements, and generally without the need for loss adjustment.”