Possible NY Ebola case sparks insurance concern

A 33-year-old doctor with Ebola symptoms is being treated in New York, prompting new consideration over certain commercial insurance policies.

Insurance News

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Ebola may have spread to New York City, warranting fresh concerns over some key commercial insurance policies.

A participant in Doctors Without Borders, who recently returned from the West African country of Guinea, was rushed to the hospital Thursday after exhibiting symptoms of Ebola. 33-year-old Craig Spencer had been back in the US for 10 days after working in Guinea, quarantining himself after discovering he had developed nausea and a high fever.

Results of preliminary testing are expected in the next 12 hours, and Spencer’s apartment has been sealed off by FDNY hazardous materials specialists.

For the commercial insurance agent, two questions may be of prime importance for clients: First, will an ongoing Ebola presence cause a quarantine of certain areas and business? And second, will workers’ compensation insurance respond in the event an employee becomes infected on the job?

The first concern is a valid one. Business interruption by means of Ebola could potentially have significant financial impact on affected businesses. In fact, the concern is so acute, NAS Insurance in Encino, Calif. recently released a specific insurance policy to deal with the threat of Ebola.

“Businesses face a significant threat if a staff member, visitor, client or patient tests positive for Ebola,” Robin said. “The premises may be closed by the Center for Disease Control or other relevant state or federal authority. The direct and indirect costs of this are not covered by any current insurance and the business could suffer a severe uninsured loss and even face bankruptcy if they are not allowed to reopen.”

As for workers’ compensation, experts suggest an infected employee must have been doing work benefitting the employer while contracting Ebola to qualify for coverage. This may prove difficult as Ebola symptoms may not manifest themselves immediately, however.

Regardless, producers would do well to revisit coverage for commercial clients in affected areas to ensure policies will respond in the eventuality Ebola strikes.
 

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