Marsh offering cover for business losses due to social unrest
Reprints
Marsh LLC has launched stand-alone insurance coverage for business losses from any denial of access to their properties as a result of social unrest, the broker said in a statement Wednesday.
The social unrest policy provides protection for non-physical damage business interruption losses “arising from any physical blockade that prevents customers and/or employees from entering or leaving an insured property,” Marsh said. The broker added that waiting periods – the length of time before the coverage comes into effect – can be as short as 24 hours after an incident occurs.
Coverage is underwritten by Chaucer Holdings Ltd., with limits up to $20 million for denial of entry and/or leaving a property caused by a protest, demonstration or disturbance to the public peace, an act of terrorism and/or sabotage, actions of any striker or locked-out worker taken to further a strike or to resist a lockout, actions of any civil or military authority for the purpose of preventing, suppressing or minimizing the consequences of any of the above occurrences, or decisions made by any lawfully constituted authority in responding to a threat made against persons and/or property, whether against a client’s employees or assets.
The broker noted that following the 2017 terrorism attack at Borough Market in London, for example, businesses in the immediate vicinity were unable to resume business for 11 days and estimates that NDBI losses there could be $750,000 to $5 million.
“Many standard insurance products have not yet adapted to the evolving nature of these threats and typically only cover business interruption losses associated with physical damage,” Justine Mayhew, head of international property at Marsh’s international placement division, said in the statement.
Read Next
-
Marsh appoints global data executive
Marsh L.L.C. has named Andrew Hickman as global head of data science, a newly created role in its digital, data and analytics practice, the broker said in a statement Wednesday.
