Reputational Risk and Crisis Management
Marsh JLT Specialty has launched a new corporate reputation insurance product in partnership with Allianz Global Corporate & Specialty.
Reputation Protect Plus, a corporate reputation insurance product provides coverage against the loss of net operating profits from a crisis combined with a comprehensive crisis response service.
While the financial loss cover under the JLT exclusive policy wording with Allianz is a game changer, we also set out to find a way of expanding this solution by helping clients identify the potential risks their business face and develop tangible response and prevention strategies.
What We Do
Reputation Protect Plus has been designed to deliver a physical asset to the board room enabling proactive management of reputational risks, in addition to the traditional benefits of investing in an insurance policy that are realised only when a loss is experienced.
Understanding the factors that determine reputational risk enables a business to take actions to address them. We can offer protection for:
Protection for up to 180 days of falling net operating profits from when the reputational harm is first discovered including the cost of an external expert required to prepare and present the quantity of the financial loss.
The policy will cover external expert costs to identify the underlying cause of a crisis and to advise on steps to prevent such a crisis in the future.
Reputational crisis response
24/7 access to a pre agreed panel of professional crisis communication consultants supported by real time media monitoring assessing the effect of the crisis ongoing and post the incident.
A strategic media analysis report
Hosted by a leading international media analysis institute, you will receive a strategic media analysis report following a briefing with your senior management.
The assessment is designed to:
- Highlight senior management’s awareness of stakeholder and typical industry risks
- Detect vulnerabilities in the business to lower and mitigate reputational risks before a crisis
- Deliver an impartial view to form the basis for a proactive crisis communication strategy.
What is a crisis?
Any event that is inherently abnormal and unforeseen in nature which specifically affects the insured company or person (and not solely their industry as such) and which has the potential to adversely affect the policyholder or its subsidiary’s business reputation.
What is reputational harm?
Any adverse effect on the insured company or individual’s professional reputation, which is made apparent in the press or on social media. This harm is caused by an unforeseen event that leads to a more negative slant on media coverage than usual.
What is the added value of this product?
Given the fact that a crisis may result in reputational harm, this product also offers compensation for the loss of the insured company’s net operating profit if revenues are affected by the crisis. Reputation Protect PLUS is tailored to provide early response to crises prior to any negative press, communication or even claim.
Why consider an insurance product to protect our reputation?
Damage to the business reputation is seen by risk managers as a critical risk (Top 10 risk according to a survey for risk managers carried out by Allianz in 2017-2019). Damaged reputation can result in loss of clients, loss of business, higher financing costs, and loss of trust of business partners (e.g. suppliers) and regulators/officials.
- Simple application form
- Cost of the annual media analysis assessment is included within the annual premium
- Limits of up to GBP 10 million with higher available on request
- Broad triggers
- Limited exclusions
- Nil retention with the exception of financial loss and mitigation costs
- Full cost cover for expert panel with 24/7 availability
- Crisis response for both the business and an individual
- Real time and global media monitoring of the crisis
- Insurers prior approval is required only for rectification advice costs
- Minimum annual premium of GBP/EUR 20,000.