BeazleyReputational Risk

Protecting what matters most

BeazleyReputational Risk Protecting what matters most

At a time of unprecedented social, political, economic and environmental change, corporate risks have become unpredictable and are increasing exponentially. Reputation is one of the hardest areas of corporate risk to manage and is an asset that companies cannot afford to lose as the financial impact can be catastrophic.

The acceleration and amplification of news through the media demands an urgent and coordinated response as reputational damage is inflicted faster and deeper than ever before. Executives and boards need real-time intelligence to identify reputational threats, protection against financial loss and crisis mitigation.

Beazley’s reputational risk solution addresses the entire life cycle of a crisis. As soon as you notify us of an event that could damage your reputation, we will provide up to $250,000 in crisis management expertise to help you manage the problem. If the crisis deepens, seriously impacting your business, we will provide substantial coverage for loss of profits, including a $1 million sublimit for advice on reputation remediation.

In the event of a claim, the time and expense of a loss adjustor can usually be avoided because the revenue drop that triggers coverage will have been agreed up front in line with your requirements.

Coverage • Pre loss crisis sublimit of $250,000 to mitigate

potential reputational harm

– Call the hotline to speak with a crisis consultant who will coordinate your response services

– Covers necessary costs to manage a reputational crisis.

• Business interruption (BI) – All risks with some exclusions. BI is triggered

by a drop in revenue. – Pre-determined allocation at policy

inception ensures speed of payment as there is no need for a loss adjustor.

• $1 million sublimit for additional crisis costs such as reputational restoration

– Coverage for costs incurred once the pre-loss sublimit is exhausted and only after BI trigger is reached.

Key territoriesNorth America, Europe and Asia Pacific

TargetAvailable for all sized businesses, specifically targeting medium sized, public facing companies operating in competitive environments from the following industries: healthcare, leisure & hospitality, manufacturing, retail, transportation and technology.

ExclusionsCrises deriving from cyber, fraud/intentional criminal acts, corporate strategic decisions, systemic and macro-economic declines.

Product function overview

Reputational event The risk manager, general counsel, chief executive officer or chief financial officer or equivalent of the named insured may, during the policy period, give to the insurer notice of an act, incident or event that they believe gives rise or may give rise to a reduction in revenue due to reputational harm.

*The profit margin %, allocation %, required revenue drop % are all agreed prior to binding as part of the quotation process.

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Immediate support available; hotline stated in policy ‘pre loss’ crisis costs payable (up to USD 250K sublimit, no retention).

Ongoing ‘crisis costs’ support available when BI section triggered, including crisis management and communications.

Expenses incurred to mitigate reputational harm, such as promotional activity, are covered subject to Beazley’s prior agreement.

Always live; accessible and trainable by the policyholder.

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The allocation %* is then applied to the nominal value of the lost profit. A self-insured retention (a nominal value rather than %) is removed from this value, resulting in the net loss payable by Beazley.

Loss is calculated every subsequent 3-month period as: expected revenues multiplied by profit margin %*.

The revenue must fall by the % specified in the policy schedule*, against expected value over the initial 3 or 6 month period from the date the notification is made to Beazley.

Business Interruption (full limit)

Crisis consultancy & support (USD 1m sub-limit)

Data analysis (included)

Service providersPolecat IntelligencePolecat Intelligence is a leading technology company that equips the world’s largest companies with the tools to manage, influence and optimize their corporate reputation. Polecat is a leader in ESG and emerging risk intelligence delivering the industry, competitor and stakeholder insight that organizations need to make better decisions and ensure they are in control of their future.Polecat takes data published online to bring together critical components of conversation, both good and bad, for the appraisal and management of risks affecting corporate ESG and reputation. The Polecat Platform visualizes this data so customers can see what is important to their business on-demand and in real-time, allowing for rapid benchmarking of their ESG and reputation profile and performance against competitors and peers.

CrisisRisk CrisisRisk is a leader in crisis and consequence management and crisis communications. The seasoned team provides critical decision support to organizations of all sizes – ranging from public to private companies – Fortune 100 to sole proprietors – and in all sectors. CrisisRisk empowers clients to make critical decisions and communicate effectively during crisis situations.

A crisis is short-lived; the consequences can last forever. Managing the consequences of a crisis requires a detailed understanding of what needs to be done, how to do it, and when to do it. CrisisRisk works with organizational leadership to protect its critical assets —people, brand, reputation, finances, key relationships, and more.

CS&AFounded in 1991, CS&A is a pioneer and a recognised leader in the field of risk, crisis and business continuity management. CS&A’s deep expertise in crisis management spans over 30 years working with clients across industry sectors internationally. They have a cross-functional team of experts in risk, scenario planning, reputation management, media and crisis communication, business continuity, HSE management, psychology and security.

CS&A are recognized as a leader within the profession and are acknowledged for their ability to provide customized, results-driven counsel at the highest level.

Clients have the option to utilize CrisisRisk, CS&A, or retain the services of their own crisis consultant.

beazley.com

BeazleyReputational Risk

Beazley GroupPlantation Place South60 Great Tower StreetLondon EC3R 5ADUnited Kingdom

T +44 (0)20 7667 0623 F +44 (0)20 7674 7100

Beazley Group45 Rockefeller Plaza 16th floor New York, NY 10111

T +1 212 801 7100 F +1 212 586 2028

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The descriptions contained in this communication are for preliminary informational purposes only. Coverages are underwritten by Beazley syndicates at Lloyd’s and will vary depending on individual country law requirements and may be unavailable in some countries. Coverages are available in the US only on a surplus lines basis through licensed surplus lines brokers. The exact coverage afforded by the product(s) described in this communication is subject to and governed by the terms and conditions of each policy issued. The publication and delivery of the information contained herein is not intended as a solicitation for the purchase of insurance on any US risk.

Contact us George Beattie

Head of Incubation Underwriting T +44 (0)20 7674 7550 george.beattie@beazley.com

Bill Clarke Claims Team Leader Executive Risk T +1 646 943 5919 william.clarke@beazley.com

Neil Kempston Underwriter T +44 (0)20 7667 0507 neil.kempston@beazley.com