SARS & Business Interruption

In August 2003 news reports indicated SARS has spread to over 22 countries, infected in excess of 2500 people and killed more than 150. In addition to the personal tragedy, the adverse impact on industry, particularly the tourism sector, cannot be underestimated.

For example, media releases suggest airlines are reducing selected international services due to the crisis.

Is loss of profit caused by infectious diseases is insurable?

In broad terms the standard Mark IV Industrial Special Risks Policy responds to Business Interruption as a consequence of damage to insured property.

Endorsements are available which extend the Business Interruption cover to loss flowing from incidents where there is no property damage. One of these is an endorsement for infectious diseases.

Typically, this responds to the Business Interruption loss from: -

Infectious or contagious disease manifested by any person whilst at the Premises.

Evacuation of the Premises by a Public Authority.

The outbreak of a notifiable human infectious disease occurring within a specified radius of the Premises.

SARS has refocused world attention on the physical nature of epidemics. Its negative impact on financial and insurance markets is a reality that cannot be overlooked.

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Author

Published with permission of Claim Solutions Pty Ltd.

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Insurance Policy

Country: - Australia.

Policy Description: - Mark IV Industrial Special Risks Policy.

Insurer: - Various.

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External Links

 

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