Background
Swine flu is a respiratory disease found in pigs which does not normally affect humans. However, a recent outbreak clustered in Mexico is causing considerable concern. The virus is capable of passing from human to human, and has been responsible for confirmed deaths in Mexico and the US, in susceptible individuals,and in hundreds of confirmed cases in countries across the globe. The flu strain, H1N1, is a genetic blend of the seasonal flu we are accustomed to, and flu commonly found in swine and birds. Although it is too early to assess the full danger or impact posed by this flu variant, the World Health Organisation is concerned that it could develop into a global pandemic.
Potential Impact
Experts estimate that a human pandemic could infect more than 25% of the world’s population, with potentially severe repercussions for business, travel, tourism, schools, the emergency services and food and fuel supply.The impact of this current outbreak is yet to fully develop but good containment policies appear to be having an impact.
Swine Flu and Insurance
Swine Flu is likely to impact many organisations. Zurich’s guidance to customers may be considered in terms of the individual types of insurance policy we offer:
Travel Insurance
In regard to our travel policies covering school journeys and business travel, we will provide indemnity to customers who have had to cancel journeys to Mexico if these trips were booked, and the insurance purchased, prior to 27 April. We are also able to provide reasonable medical expenses for those suffering illness in Mexico. In this instance, contact our appointed representatives, AXA Inter Partner Assistance UK, via the emergency numbers listed below.
Our Business Travel policy, in common with many in the market, excludes cover to countries where the Foreign and Commonwealth Office (FCO) are advising against all travel, or all but essential travel. At present, the FCO is advising against all but essential travel, so customers must note that new travel plans to Mexico will be excluded.
The FCO is not, however, currently advising that travellers leave Mexico, so claims for curtailment will be dealt with on a case-by-case basis, taking into account factors such as proximity to ‘cluster’ outbreaks. It is recommended that customers currently in Mexico avoid locations where there may be a greater risk of infection, and consider carefully whether they wish to remain in Mexico.
Emergency Call Centre Numbers:
+44 (0) 845 271 3848; or fax +49 89 500 70389
Property Insurance: Business Interruption
Our Business Interruption (BI) policy covers ‘notifiable disease’ as an extension to our standard policy, where notifiable disease refers to infectious or contagious diseases – an outbreak of which a competent local authority stipulates shall be notified by them. However, although Swine Flu is infectious, it is not a notifiable disease in the UK, a list of which is available from the Health Protection Agency. BI claims relating to Swine Flu, are therefore not covered.
Our advice to customers must therefore focus on making all reasonable attempts to mitigate the potential effects of Swine Flu on business operations. Examples of this have been seen with the proactive approach of education authorities and Independent schools in the past week. You may wish to consider whether reasonable and cost effective contingency plans are in place in case of key personnel being ill for a week or two? Is it possible key locations may be closed for periods of time to prevent contagion, and if so, are plans in place to try to maintain business as usual? It is advised that customers review their capacity to cope in the event of a pandemic, and take appropriate risk management steps.
Such advice is of course particularly important for the emergency services, who must ensure sufficient staff numbers and adequate provision to respond to emergency calls.
Public, Product, and Employers’ Liability Insurance
Our policies respond when it is shown that a customer is legally liable for bodily injury to employees and in the case of Public and Products Liability for injury to third parties or damage to their property. Our policies do not contain any specific exclusions relating to Swine Flu, however legal liability must be established in order for an indemnity to be granted by our policies. The courts would take the specific circumstances into consideration when passing judgement.
Customers are reminded that they have a duty to avoid and mitigate loss. Effective risk management may prevent the occurrence of events giving rise to legal liability. Alternatively, it may enable the effective defence of any liability claim and help lessen reputational damage. Risk management pertaining to Swine Flu may involve ensuring standards of hygiene are optimal and that no-one is put in a position where the possibility of infection is particularly significant. Planning teams and co-ordinators may need to be appointed to provide training, education, and promote good hygiene practice.
Practical steps that customers may wish to consider when managing their exposure include the following:
- Inform employees to stay home for 5 days if they have recently returned from a trip to Mexico. If they haven’t developed symptoms in that time, it is safe to return to work.
- If employees get flu symptoms, they should call their doctor or NHS Direct (0845 46 47).
- Request they update their line manager on a daily basis.
Prospects
The most recent news on Swine Flu has been encouraging, suggesting death rates are lower than was first expected, and that the infectiousness of the flu variant is less severe than it was first thought.
Nonetheless, customers should remain vigilant and keep abreast of the latest developments. Experts cannot rule out further spread of the disease nor a ‘second wave’ of Swine Flu with more severe repercussions than those currently being experienced.
Additional information, including the latest news, is available from the following websites:
We provide these links to you only as a convenience. Zurich Insurance Plc is not liable for the content of any linked sites or any link in a linked site, or any changes or updates to such sites.
