A bird flu pandemic would not only cause losses for the life insurance industry but would impact property-casualty insurers as well, according to an analysis by a health care specialist broker.
Gisele Norris, a trained epidemiologist and senior consultant for Aon Healthcare, Chicago, said business interruption is one line that could come into play, although as the policy is generally written now, it would not be relevant.
"You would have to create a special business interruption cover to protect your business against the impact of a pandemic," she said.
While quarantine may be construed as a government action that could trigger such a traditional policy, Ms. Norris has her doubts.
"You would get a lot of argument from the insurers. I think this would be in the courts for years," she said.
A policy geared for a pandemic threat could be written so as to be triggered by loss of employees or loss of business, she said.
"Some people have also talked about a trigger such as the World Health Organization declaring a certain level of pandemic and then the coverage going away once it backed down," she said.
Employer liability coverage could also be impacted.
"Let's talk about a hospital," Ms. Norris said. "If an infection control procedure was not followed and an infection ensued, that is something an insured should look at and see if it is covered in a liability policy."
Among the businesses most concerned with pandemic issues is the agribusiness sector, particularly on business interruption issues.
"One of the reasons they are worried is they fear people are going to stop eating chicken," she said.
In addition, the severe losses suffered by poultry producers during Hurricane Katrina have made them more aware of nature's threats, Ms. Norris added.
Farthest down on the list of affected lines would be workers' compensation, Ms. Norris said, since any incidence of disease would be difficult to trace to the job.
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