Intangible Asset Damage Can Be As Costly As Physical Loss

You can’t light them on fire. A tornado can’t blow them away. They won’t rot of mold when wet.

Still, damage to intangible assets, like brand recognition and reputation, can harm a business as much as the destruction of a physical asset.

‘On average, more than 25% of a company’s market value is directly attributable to its reputation in the marketplace,’ said Lloyd’s Canada president Marc Lipman.

Speaking at the Future of Insurance Canada conference, Lipman said intellectual property, human capital and brand/reputation are the three major categories of intangible assets. And damage can happen remarkably quickly.

‘Reputational damage can be caused by a single employee saying or doing the wrong thing at the wrong moment,’ he said.