Outbreak Extra Expense... Solving Contagion Risk

With heightened concern caused by recent contagion events, Next Wave Insurance Services is now offering our agents and brokers a valuable policy, OUTBREAK Extra Expense. This unique policy provides per day, per location coverage for up to 30 days for suspension of operations by a public health official due to a covered contagion. The wide array of contagions include legionnaires, influenza, E. Coli, Salmonella, Norwalk, MRSA, and a variety of other viral and bacterial contagions.

Written through Evanston Insurance Company, a Markel Company, OUTBREAK is designed to protect most commercial classes including restaurants, hotels, healthcare facilities, schools, commercial real estate, retailers, pharmaceuticals, service operations and more. OUTBREAK also provides coverage for up to five days of suspended operations due to workplace violence events, as well as mold and fungus that result in human illness.

POLICY HIGHLIGHTS:

  • Non-admitted “A” (Excellent) rated carrier partner
  • Policy proceeds used at insured’s discretion
  • Valuable protection for multiple industry classes
  • Flexible daily limits ($2,500-$50,000) with $5 million aggregate
  • Per location aggregate of 30 days
  • Unique coverage triggered by a wide array of contagions
  • Public/private school campuses equal one location and one aggregate
    (not per building)  

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3 KEY COVERAGE TRIGGERS:

  • Business suspension due to a public health official order
  • Covered location must involve insured’s “operational premises”
  • Cause of loss must involve a contagion 

COVERAGE EXPENSES: 

Policy proceeds used at insured’s discretion include:

  • Lost revenue
  • Ongoing operational and labor costs
  • Remediation and clean up expense
  • Public relations and advertising 

COVERAGE NUANCES AND LIMITATIONS:

  • The coverage is not designed as business interruption to replace lost profits
  • Restaurant and food service classes have a three-day waiting period when losses occur due to E. Coli or Salmonella infestation
  • Mold/fungus losses have certain limitations in order to activate policy
  • Five-day waiting period for water borne pathogen, “period of suspension”  

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