Global broker WTW has announced the launch of a financial product targeting clients looking to protect their intangible assets.
Described as a first-of-its-kind product, WTW said its Intangible Asset Protection (IAP) looks to meet client demand and to fill a coverage gap in the market.
An intangible asset is one that is not physical but can hold significant value, and which can be created, transferred, bought or sold. Examples of intangible assets include intellectual property rights, formulas, processes, research and development testing, computer programming code and more.
All these can carry exposures where a company might want to consider protecting and transferring the associated risks, which is where WTW’s new IAP product would apply.
The broker’s new IAP coverage loses a coverage gap in cyber, property, business interruption, and traditional intellectual property (IP) insurance, said WTW.
IAP is a tailored insurance offering that will initially cover non-public, proprietary, intangible assets from accidental or malicious insider actions resulting in disclosed, misappropriated, damaged, destroyed or lost IA.
WTW is partnering with Tokio Marine Kiln on the product.
Kim Cauthorn, Global IP Leader, WTW, commented: “We listen closely to the needs of our clients; intangible assets comprise the majority of enterprise value for many entities today, but most of those assets are uninsured. Accordingly, that calls for a product that closes a key insurance coverage gap.”
Beginning with coverage capped at $10 million in year one, it will expand through an iterative approach to cover additional intangible asset categories and exposures at higher limits. “IAP is the first holistic, modular vehicle for clients to tailor coverage to fit their IA risk profile, with the potential to grow and evolve with their business needs,” Cauthorn added.