Reputational Risk products are hot: Clients are actively asking insurers about available coverages, and insurers are reacting with a variety of products.
“Based upon what I hear, there are tremendous concerns in the market about reputational risks,” says Howard Mills, director and chief advisor of Deloitte’s insurance-industry group and former superintendent of the New York State Insurance Department. “In today’s world, you have one dissatisfied customer, and they can immediately get on the Internet and do a lot of damage to your company.”
CHARTIS: WHAT IF TIGER WOODS WAS YOUR SPOKESMAN?
When in October 2011 Chartis launched ReputationGuard, a standalone product designed to meet the specific needs of small companies, it found that clients wanted Reputational Risk coverage not for the types of events related to their industry but for the unanticipated.