Aon has announced the launch of a new fuel insurance product designed to help shipping and aviation companies protect against rising fuel costs.

The coverage, backed by AAA-rated credit insurance, will be activated if the cost of fuel rises to exceed an agreed-upon limit. The policy will cover the difference between the agreed-upon price and the higher price, paid out monthly. The coverage will help companies manage their fuel-cost exposure and avoid significant spikes in market price, Aon said.

“This insurance product can provide a valuable solution to companies that consumer large amounts of fuel, including marine, aviation, construction, mining and energy, and is one of the first of its kind commercially available in the sector,” Aon said.

“Aon is committed to identifying, understanding, and developing innovative solutions to meet our clients’ evolving needs,” said Chris Bhatt, global head of sales, marine, at Aon. “With the launch of this solution, we are pleased to support our clients as they navigate an increasingly complex commercial environment and address long-tail risks to promote corporate resiliency and sustainability.”