Aon has launched a new security insurance policy. The company's risk management solutions division has developed the offering to allow companies to release capital and debt for use in their business.
The cover provides solutions for pension deficits, decommissioning, environmental liabilities, surety and performance bond obligations and fronting insurer security requirements.
Aon claims the policy:
• Frees up cash for investment in the business by providing financial security in a way that does not require the company to post collateral or use its credit facilities.
• Assists corporate expansion by providing transformational capacity running into £100s of millions for single company risks.
• Supports companies undertaking long-term financial liabilities and obligations by providing fixed rate terms of up to 10 years and even beyond.
Paul Campbell, head of product development at Aon's Risk Management Solutions, commented: "This solution is primarily aimed at public companies burdened by large and prohibitive financial security arrangements in excess of £25m in the aggregate. It is based on the need of our clients to free up capital that they can then use to fund other business initiatives such as acquisitions or new projects, while providing long-term guarantees that they will meet sizeable obligations in the future."
