New cover for pandemic disease business interruption

U.K.-based Miller Insurance Services LLP and U.S.-based retail insurance broker William Gallagher Associates (WGA) have announced the availability of Pandemic Disease Business Interruption Insurance.

Provided by the Ark Syndicate at Lloyd’s, the insurance would respond to loss of income arising directly out of quarantine shutdowns of healthcare facilities and the diminished revenues in the aftermath of a quarantine, notes a statement issued Wednesday by Miller Insurance.

The coverage is available through highly rated insurers in London licensed in the United States and in other world markets, the statement adds.

“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,” Peter Reilly, healthcare practice leader for WGA, reports in the statement.

“Together, we have designed coverage that can be triggered by events like we have already seen in the Dallas Ebola case,” Reilly says.

Media reports indicate a second nurse in Dallas has contracted the disease and later flew across the Midwest the day before falling ill. After coming to the U.S. from Liberia, the man being treated was diagnosed with for Ebola and died October 8.

“The need for this coverage is acute at a time where Ebola and the Enterovirus threaten the operating capacity of global healthcare facilities,” Mark Sleet, professional risks broker at Miller Insurance, says of the new insurance offering.

Noting that hospitals and related entities have exposure to a voluntary or involuntary quarantine of their premises given the potential accumulation of people and the need to try and contain the virus, “this could be potentially catastrophic for any medical related facility,” comments Richard Bryant of Ark Syndicate, Specialty Programs.

Last week, global risk advisor, insurance and reinsurance broker Willis launched a one-stop portal on its website to provide clients and associates with access to a resources to help firms prepare their workplaces for the Ebola threat.

“The threat of the outbreak underscores the importance for firms to establish robust emergency preparedness and business continuity plans,” Marc Hindman, Willis risk control and claim advocacy practice leader, said at the time.

The World Health Organization (WHO) notes that the Ebola virus is transmitted among humans through close and direct physical contact with infected bodily fluids, the most infectious being blood, feces and vomit.

Although the virus can be transmitted indirectly by contact with previously contaminated surfaces and objects, “the risk of transmission from these surfaces is low and can be reduced even further by appropriate cleaning and disinfection procedures,” WHO reports.

“To stop this outbreak, more needs to be done to implement – on a much larger scale – well-known protective and preventive measures. Abundant evidence has documented their effectiveness,” the information emphasizes.

Canada’s health minister Rona Ambrose announced earlier this week the launch of Phase 1 clinical trials for Canada’s Ebola vaccine at the Walter Reed Army Institute of Research in Maryland. The experimental vaccine was developed by the Public Health Agency of Canada, notes a statement from Health Canada.

The Phase 1 clinical trial will test the vaccine on a small group of people to assess its safety, determine the appropriate dosage and identify any side effects. Outcomes of this Phase 1 trial are expected in December 2014.

There has never been a case of Ebola in Canada and the risk to Canadians remains low, the statement adds.