Re/insurance broker Aon has announced the launch of a new Non-Damage Business Interruption (NDBI) cover that is designed to protect the income streams of companies with high levels of intangible assets.
Insurance protection for the new NDBI product is provided by a number of major re/insurers, Aon said, including Lloyd’s of London and Swiss Re.
The NDBI cover aims to align with an ongoing change in business models, with many companies now considering physical damage to be a lesser priority than risks related to income streams or cash flows, such as a terrorist threat, a cyber attack, or unseasonal weather.
It was structured by Aon’s Innovation & Solutions team, and is supported by advanced data and analytics and actuarial analysis, meaning Aon can develop customised policies for each individual client, utilising parametric indices as well as traditional re/insurance.
Aon said its NDBI solution will be applicable to a wide range of businesses, including hotels, retailers, pharmaceutical firms and transportation companies.
Within the hospitality and retail sectors, the product can also help firms mitigate the financial impact of client footfall after events such as delays or cancellations to transportation.
“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,” said Kurt Cripps, head of Aon’s Innovation & Solutions team.
“This new NDBI cover protects these types of companies against the events that can have the biggest impact on their revenue streams,” Cripps added.
