Pandemic: An Inconvenient Risk

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Pandemic An Inconvenient Risk

• September 27, 2009

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Table of Contents
Slide title should not be larger than Palatino
Linotype 24pt.
Section 1 Welcome and Introductions Section 2
Update on H1N1 Pandemic Section 3
Insurance Options and Impacts Section 4
Getting Ready Now Section 5 Questions and
Answers
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What happened to the guy who brought Swine Flu
into Mexico?
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Update on H1N1 Pandemic

• Global spread is continuing
• Virus is stable
• Lethality in the west is low
• Some countries globally have seen 15
  hospitalizations
• Vaccine targeted for mid-October
• Tamiflu shortages emerging in the US and abroad
• Remember that H5N1 is still in a pandemic alert
  phase

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Insurance Options and Impacts

• Pandemic Insurance
• Business Interruption
• Trade Disruption
• General Liability
• Property Insurance
• Executive Risk
• Worst Case Scenario

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Hays Proprietary Pandemic Insurance Product

• Target Market private education, hotels,
  resorts, restaurants, hospitals, transportation,
  service providers and manufacturing.
• Limit up to 250MM per occurrence / annual
  aggregate
• Coverage Business Interruption and Extra
  Expense (Actual Loss Sustained) resulting from an
  incident satisfying a Coverage Trigger which
  commences during the Policy Term.
• Policy Term 1, 2, or 3 years

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Hays Proprietary Pandemic Insurance Product

• Coverage Triggers
• Phase 6 Pandemic on the North American Continent
  as defined by the World Health Organization.
• Phase 3, 4, and 5  Pandemic on the North American
  Continent as defined by the World Health
  Organization which gives rise to a drop in
  attendance at an affected Insured of more than
  15 for a period of two weeks or longer, or which
  gives rise with respect to an affected Insured to
  a restriction by any governmental authority in
  travel to/from the geographical area which
  includes any covered facility.
• Food-borne/Water-borne Illness transmitted on the
  premises of an affected Insured resulting in
  bodily injury, sickness, illness, disease or
  death to more than 5 individuals.
• Contamination on the premises of an affected
  Insured resulting in bodily injury, sickness,
  illness, disease or death to more than 5
  individuals who of that Insured which gives rise
  to a drop in attendance of more than 15 for a
  period of two weeks or longer,
• Workplace Violence on the premises of an affected
  Insured emanating from a single act or connected
  series of acts committed by person(s) with
  malicious intent against employee(s) or customers
  of that Insured that results in bodily injury to
  5 or more individuals. Such Violence must result
  in regional or national media coverage within 24
  hours of the act, or must give rise to a drop in
  attendance of more than 15 for a period of two
  weeks or longer.

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Hays Proprietary Pandemic Insurance Product

• Deductibles
• Phase 6 Pandemic None.
• Phase 3, 4, and 5  Pandemic None.
• Food-borne/Water-borne Illness The greater of
  250,000 and the first 5 of any Loss otherwise
  covered hereunder in respect of each Occurrence
  covered hereunder.
• Contamination The greater of 250,000 and the
  first 5 of any Loss otherwise covered hereunder
  in respect of each Occurrence covered hereunder.
• Workplace Violence The greater of 250,000 and
  the first 5 of any Loss otherwise covered
  hereunder in respect of each Occurrence covered
  hereunder.

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Hays Proprietary Pandemic Insurance Product

• Covered Damages In general, this policy will
  reimburse Lost Earnings that would otherwise have
  been achieved as a result of any suspension or
  reduction in operations.
• Exclusions To Be Agreed, but to include War and
  Nuclear. Extent of and definition of Terrorism
  Coverage to be agreed.
• Cost Premium is 4 to 6 of limit (excluding
  H1N1)

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Getting Ready Now
Pandemic exposures are almost completely
foreseeable and should be addressed in advance

• Get to know local health officials
• Index key skills/relationships
• Engage key customers and vendors
• Work to develop big picture policy on employee
  time off
• Decide what role, if any, you want to play in
  vaccine or antiviral distribution for employees
  and their dependents

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Getting Ready Now

• Benchmark if you can industries will differ
• https//navigantpandemicsurvey2009.questionpro.com
  /
• Understand the international exposures
• Culture differences
• Drug distribution
• Border issues
• Medical evacuation
• Treatment of Ex-Pats vs. nationals

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Prevention is good but

• It is possible to go overboard
• Masks are not recommended in most cases
• Social distancing is not necessary right now
• Requiring doctors notes for return to work will
  be counterproductive
• Drive people to work sooner
• Needless delays returning after healthy
• Understand likely infection scenarios
• Remember the cultural aspects of Health and
  Safety protocols

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Questions/ConcernsPlease Contact one of the
Following.