- New insurance products aim to protect businesses from disruptions caused by future pandemics
- COVID-19 creates new opportunities for insurers to plug gaps in policies
- Products provide peace of mind, but usually don’t come cheap
The widespread economic disruptions caused by the COVID-19 pandemic have prompted insurers to offer new products that will protect businesses in the event of future viral outbreaks.
Insurers typically create exemptions for pandemics, and some insurers that paid out for loss of revenue caused by the pandemic have since added such exemptions. However, the increased demand for financial protection has created opportunities for policies that address these concerns, such as ones customized for individual businesses or offered to businesses that need to shut down a second time after reopening.
While the policies can provide peace of mind to businesses, they typically come at a very high price since there has not been a historical basis to determine the value of pandemic-inflicted losses.
