Aon has announced a new insurance product for the aviation and shipping industries which will help companies protect against rising fuel prices.
The insurance solution is one of the first of its kind commercially available in the sector and will provide viable support to companies that consume large amounts of fuel.
The coverage will be activated if the cost of fuel rises and exceeds an agreed limit, and is backed by AAA-rated credit insurance.
The insurer said the new policy will cover the difference between the agreed price and the higher price, which is paid out monthly, to assist companies in managing their fuel cost exposure and avoid significant spikes in market price.
Chris Bhatt, global head of Sales for Marine at Aon, said: “Aon is committed to identifying, understanding and developing innovative solutions to meet our clients’ evolving needs.
“With the launch of this solution, we are pleased to support our clients as they navigate an increasingly complex commercial environment and address long-tail risks to promote corporate resiliency and sustainability.”