Article / Risk Management
The Challenges of Insuring Against Epidemics & Outbreaks

The 2014 Ebola outbreak was another wake-up call for companies who want to protect themselves from not only the risk of an epidemic, but the financial losses they could incur should it negatively impact their business.

In the past, companies have dealt with the risk of outbreaks through more traditional means, such as supply-chain or revenue-disruption coverage, said Logan Payne, senior account manager at the insurance brokerage Lockton Companies in Kansas City, Mo.

A challenge for those policies is proving that an outbreak of a disease was the reason a company lost revenue, according to Payne. Insurance against fire is simpler because the damage is clear to see, whereas the impacts of an epidemic are more complicated and harder to prove.

“It’s a niche for the insurance field, but there is definitely more interest especially as more institutions look to write insurance contracts,” Mr. Payne said.

Read the full Wall Street Journal article. [May require subscription]

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