Prospect Brokers Logo

Ebola Regulatory Business Interruption

The world is now a very small place with increased global travel meaning all corners of the globe are regularly visited by a diverse range of people and professions.  Communicable diseases are a real threat and their spread from one continent to the rest of the world is sometimes inevitable and fast paced causing widespread fear and panic.  Nobody knows how serious or widespread the Ebola outbreak will be, or indeed what other life-threatening diseases will arise but it will remain virtually impossible to contain them within their countries of origin.

‘The individual treatment costs of Ebola will normally be met by the medical and/or travel insurance of the individual or his/her company which is a well served market,’ says Prospect Director Jamie Webb, ‘but what is new is the threat that a business can be shut down by regulatory authorities due to the presence of communicable disease on the premises. If a staff member, visitor, client or patient tests positive for Ebola, the premises may be closed in America by the Center for Disease Control or other relevant State or Federal Authorities. The direct and indirect costs of this are not covered by any current insurance and the business could suffer a severe uninsured loss and could even face bankruptcy if they are not allowed to reopen.’

‘Our product will pay a per day benefit for a period of Suspension due to Ebola.  We will also look to have a sub-limit for a mandatory evacuation of a premises in these instances.

‘Hospitals, hotels, airports, shopping centres, restaurants, cinemas, gyms and any place the public  may congregate including apartments and habitational units are probably most at risk. They have exposure to a voluntary or involuntary quarantine of their premises given the potential accumulation of people and the need by the Authorities to try and contain the virus. This could be potentially catastrophic for any business owner’ commented Richard Bryant of Ark Syndicate.

According to a study by the World Bank the estimate of the potential effect on the global economy could be as much as $32.6 billion dollars by the end of 2015 if the epidemic spreads into neighbouring countries beyond Liberia, Guinea and Sierra Leone. 

We are currently pioneering this product internationally, please contact Jamie Webb (jwebb@prospectbrokers.com) in London for more details. In addition we would welcome partners who feel this is a product their clients need.