New pandemic insurance policy aims to support businesses

Posted: 18 March 2020 10:32 am

James Allen Insurance’s policy is designed to help businesses weather the COVID-19 outbreak and recoup expenses.

James Allen Insurance announced its new pandemic policy for businesses on March 17. Launched as a response to the coronavirus, the policy is intended to protect businesses during the outbreak and help them cover out-of-pocket expenses and lost revenue.

Available exclusively in the US, the coverage is backed by Lloyd’s — a market leader in specialist insurance — and other European-based insurers. It’s open to all types of businesses.

“We are committed to helping any type of business in the United States as they weather both the current storm and as they look towards protection from future outbreaks,” James Allen Insurance CEO, Tim Craig, told Finder.

“In the past few days, we’ve received interest from restaurants and airlines, just to name a few, and plan to provide each company interested with a customized approach that is best suited for their needs and industry,” Craig said.

“There are no specific prerequisites for businesses interested. We are willing to help anyone — from a small business owner to a CEO for a large national corporation — survive the financial losses and impacts they are experiencing as a result of this current pandemic,” Craig said, citing that the insurer had already written policies ranging from $25,000 to $500 million.

What the policy covers

The new pandemic policy is tailored to the specific needs and risk factors of a business.

For a healthcare company, this could include coverage for staffing, supplies and disinfection services, as well as a loss of revenue stemming from a drop in patient numbers, according to the insurer.

And for hotels, airlines, restaurants and other businesses that need tourism to survive, the policy could cover a loss of revenue due to travel bans, event cancelations and government-issued quarantines.

Craig said there are no minimum and maximum coverage limits for the policy — but there’s limited capacity, and “coverage will be placed on a first-come, first-serve basis.”

By this logic, the available coverage amounts will come down to the insurer’s capacity at the time of application.

“As of this morning, James Allen Insurance has quoted all current requests received, and these policies total a combined $2 billion-plus in coverage,” Craig told Finder.

Though we’re at the early stages of the outbreak, the insurer expects exhaustion — but says the policy can put ongoing pandemic coverage on businesses’ radar for the future.

“Right now, it’s about being reactive. But it’s also about being proactive for the future.”

Photo credit: James Allen Insurance

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