Little insurance coverage is available to protect business against any fallout from the current swine flu outbreak, and in any case risk managers need to be aware of how to minimize potential infections among staff and compensate if the worst-case scenario comes to pass, experts warn.

The number of confirmed cases in the United States topped 100 last week, with the majority in the New York City area, and reports were coming in about infections in Europe as well, according to the Centers for Disease Control and Prevention.

Thus far, Mexico–where this flu strain is suspected to have originated–has been the hardest hit by the virus, with at least 150 deaths and an estimated 2,400 people infected as this article went to press. Reports say the U.S. cases were contracted from people visiting the country recently.

Alex Hindson, head of enterprise risk management at Aon Global Risk Consulting, said that while health risks are unpredictable, the possibility that an outbreak could turn into a pandemic means businesses need to review their continuity management arrangements.

Risk managers, he said, need to make sure plans have been updated and key staff trained. Absences must be addressed, including arrangements for remote work and hygiene control. One point he stressed is that businesses should be running drills to make sure people know what to do if personnel absence due to the illness makes it difficult to keep their business running.

Gisele Norris, national director of Aon's Healthcare, Alternative Risk Practice, noted that in a worst-case scenario, a pandemic producing widespread absenteeism would not be covered under a company's business interruption insurance because it only covers stoppages due to property damage.

However, other insurance that could be affected might include workers' compensation, but that would depend on the type of business, so it is not applicable to everyone, she added.

Also, employers could see workers requesting time off under the Family Leave Act to deal with sick family members, she noted. Employee assistance programs could also see an increase in demand as workers tap these services to discuss symptoms, anxiety or depression concerning the threat.

The current flu strain is seen as worrisome because flu outbreaks normally are fatal only for the very young or old, while this strain thus far is killing people between the age of 15 and 44, which is unusual. Ms. Norris stressed that this is something to be watched, but cautioned against any overreaction.

“Don't panic, and be aware of what is happening,” she advised.

From a loss control and safety standpoint, Michael Liebowitz, director of risk management for New York University, said organizations of all types need to take some initiative at this point, contacting personnel who may be in Mexico and informing them of the outbreak.

Those in Mexico should be brought back and any plans to visit the country should be curtailed at this time, according to Mr. Liebowitz, a past president of the Risk and Insurance Management Society. (See the accompanying sidebar for loss control and safety tips from RIMS.)

Both he and William C. Kostner, risk manager for the city of Lincoln, Neb., said the most important steps people need to take are to recognize the symptoms and practice proper hygiene to help curb the flu's spread.

“These events are happening more often,” said Mr. Kostner, adding that serious flu outbreaks are occurring just as frequently as catastrophic weather incidents.

There is no test to check for the flu, according to Mr. Liebowitz, who said the best defense besides good hygiene and watching for early symptoms is to make educated decisions on what to do.

Additional information on the outbreak is available at www.cdc.gov/swineflu/.

Special Reports /

Swine Flu Outbreak No Time For Panic, But Risk Managers Can Help Limit Losses

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