Global Re/insurance brokerage firm Aon has rolled out an new intangible asset insurance cover to safeguard the income channels of companies with high levels of intangible assets.
The new offering, dubbed Non-Damage Business Interruption (NDBI), seeks to align with ongoing change in business models.
The offering has been tailored to a new generation of companies such as Airbnb, Aon said.
NDBI policies shield companies’ revenues from business interruption costs that result from an event where there is no physical damage.
At present, many companies consider physical damage lesser risk priority than risks related to income streams and cash flows, including a terrorist threat, a cyber-attack, or unseasonal weather.
The NDBI will offer coverage to a number of businesses such as hotels, hospitality firms, retailers, pharmaceutical firms and transportation companies.
Aon head of innovation and solutions team Kurt Cripps said: “Given that more and more businesses comprise either few, or a low concentration of physical assets, there is a need for an insurance product that places less emphasis on the physical damage component of a loss.
“This new NDBI cover protects these types of companies against the events that can have the biggest impact on their revenue streams.”
Structured by Aon’s Innovation & Solutions team, the NDBI product will be supported by advanced data and analytics and actuarial analysis to help develop customised policies for individual clients.
Insurance protection for the new NDBI product is offered by re/insurers such as Lloyd’s of London and Swiss Re.