Global broker WTW has announced the launch of a financial product targeting clients looking to protect their intangible assets.
WTW said its new Intangible Asset Protection (IAP) product is the first of its kind and fills a coverage gap in the market. The broker is partnering with Tokio Marine Kiln on the product.
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.
WTW’s IAP coverage closed a coverage gap in cyber, property, business interruption, and traditional intellectual property insurance, the company said. IAP is a customized 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 intangible assets.
“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 underinsured,” said Kim Cauthorn, global IP leader at WTW. “Accordingly, that calls for a product that closes a key insurance coverage gap.”
Beginning with coverage capped at $10 million in the first year, the IAP product will expand to cover additional intangible asset categories and exposures at higher limits, WTW said.
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“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 said.
“Tokio Marine Kiln has a longstanding reputation for intellectual property products that address changing clients’ needs, and we are proud to partner with WTW on this pioneering product,” said Aoife Woulfe, head of intellectual property at Tokio Marine Kiln. “This product addresses critical coverage gaps in intangible risks and has the potential to become invaluable to clients by increasing the resilience of their businesses to unexpected events.”
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