As concerns about the outbreak of Ebola and the potential for a wider spread of the disease increase, Marsh has put together guidance to help businesses understand and manage the UK insurance position and the risk management implications.

BUSINESS TRAVEL INSURANCE

Organisations should check the extent of cover provided by their insurer. One major insurer, with whom Marsh places a significant amount of business travel insurance, has confirmed it continues to cover medical expenses and repatriation costs related to Ebola (subject to normal policy terms and conditions and any logistical issues, as outlined below). However, other insurers may take a different stance.

Any persons travelling or working within Ebola affected countries need to be fully aware that in some parts of Guinea, Liberia, and Sierra Leone the medical infrastructure is severely compromised due to efforts to control the Ebola outbreak. As a consequence, there are severe logistical problems with moving any patients due to travel restrictions, closed borders, the reluctance of other countries to accept patients from Ebola territories, and a lack of suitable transportation. Due to the narrowing commercial options for flights and the impact on medical facilities, the Foreign and Commonwealth Office (FCO) is advising against all but essential travel to these countries, except for those people involved in the direct response to the Ebola outbreak. Travellers need to be aware that even if their insurer is willing to provide repatriation to the UK in principle, in practice, evacuation may not be possible and they may have to be treated abroad. This limitation doesn’t just apply to Ebola sufferers, but also for any injury or illness that may be suffered.

Costs associated with the cancellation of any booked trip to an Ebola affected territory are unlikely to be refunded by an insurer, as cancellation under these circumstances will be regarded as “disinclination to travel”. This is, however, unless the FCO’s current stance changes and it advises against all travel to these countries.

BUSINESS INTERRUPTION INSURANCE

Standard BI insurance cover is triggered only after the policyholder has suffered damage to the premises for which property cover is in force. Similarly, any policy extensions relating to denial of access, customers and suppliers, and loss of attraction are only triggered by damage to the premises of surrounding properties, customers, and suppliers. An outbreak of Ebola would not constitute damage to property and therefore the policy would not respond to interruption caused by events such as closures due to the Ebola virus. Some may argue that biological contamination does constitute “damage”, but based on past experience with animal diseases such as foot and mouth, this is unlikely to be accepted by UK insurers.

RISK MANAGEMENT ACTIONS

•Monitor developments via the websites of the World Health Organisation (WHO), the Centres for Disease Control and Prevention (CDC), your national health authority, and localhealth authorities.

•Review your company’s business travel approval procedures to ensure there is an escalation process to review any proposal to send an employee(s) to West Africa or any other affected territory. Unless it is business-critical, follow FCO advice and avoid travel to Sierra Leone, Guinea, or Liberia.

•If you do decide to send employees to an Ebola affected territory, educate yourself and them about Ebola’s transmission and infection-control measures and ensure you record this in detail and in writing. Such advice should include:

-If you are in an affected area, avoid high-risk activities such as contact with ill people or the bodies of people who have died from Ebola, with sick or dead wildlife, or with bush meat.
-Pay strict attention to hygiene. Frequently wash your hands or use hand sanitiser, refrain from touching your face, and avoid close contact with an obviously sick person.
-Monitor your health and seek medical attention if you feel sick (for example, fever, headache, achiness, sore throat, diarrhoea, vomiting, stomach pain, rash, or red eyes).
-Always carry the emergency medical assistance number provided by your business travel insurer.

•Review your business continuity plans and the corporate structure to ensure they will respond if the situation worsens and a pandemic event occurs that affects key individuals or groups of individuals in your organisation.

•Review your supply chain and customer profiles to establish if you have any critical dependencies on suppliers or customers in an affected territory. If such a dependency is identified, consider what enhanced risk controls you should put in place to protect your position.

For more information, go to Marsh’s Ebola Response Centre. http://usa.marsh.com/EbolaResponseCenter.aspx

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