Beazley, Lloyd’s insurers partner on reputational risk cover

Beazley PLC said Monday it is partnering with other Lloyd’s insurers to offer reputational risk coverage to protect firms experiencing crises.

Beazley said in a statement Monday that through coverage offered by the Custodian Consortium, policyholders could be entitled to crisis management advice worth up to $1 million.

Also participating in the consortium are Tokio Marine Kiln and Renaissance Re in addition to Beazley’s syndicate 5623, according to the statement.

The first $250,000 of the coverage is available on a pre-loss basis, regardless of whether a revenue loss is ultimately recorded, according to the statement. Limits of up to $35 million are available, according to a spokeswoman.

The policy works on an all-risks basis, offering coverage for situations ranging from allegations of sexual harassment or bullying against a senior executive, or the mismanagement of such claims, to faulty or misused medical equipment. 

The coverage is available to U.S.-domiciled organizations of all sizes, but is specifically targeted for companies with up to $5 billion in revenue, including both public, private, for-profit and not-for-profit enterprises.

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