Brokers launch business interruption cover for Ebola, other pandemicsPosted On: Oct. 15, 2014 12:00 AM CST
London-based brokerage Miller Insurance Services L.L.P. and Boston-based brokerage William Gallagher Associates Insurance Brokers Inc. on Wednesday launched a pandemic disease business interruption insurance coverage intended to respond to loss of income arising from the closure of healthcare facilities and reduced revenues in the aftermath of quarantine caused by Ebola or other highly infectious diseases.
The brokerages launched the product, which will be underwritten by Ark Syndicate Management Ltd.'s syndicate 4020 at Lloyd's of London. Details of limits and coverage terms were not available.
“The need for this coverage is acute at a time where Ebola and the Enterovirus threaten the operating capacity of global healthcare facilities,” said Mark Sleet, professional risks broker at Miller, in a statement.
“Insurance for lost revenue arising out of a non-physical damage event like a voluntary or involuntary quarantine of facilities and medical professionals is not available on most business interruption coverage forms,” said Peter Reilly, healthcare practice leader at WGA, in the statement.
“Together we have designed coverage that can be triggered by events like we have already seen in the Dallas Ebola case,” he added.
“Hospitals and related entities have exposure to voluntary or involuntary quarantine of their premises given the potential accumulation of people and the need by authorities to try to contain the virus,” said Richard Bryant, a senior underwriter at Ark, in the statement.
“This could be potentially catastrophic for any medical-related facility,” he added.