Written by Sarah Lim, CA Lic# 0M52397
Medical Pandemic – A New Kind of Coverage for Hospitals
Hospitals and large medical institutions are always at a high risk of being exposed to an outbreak of a contagious disease due to the constant traffic of people with all kinds of illnesses. If a medical pandemic were to ever happen, the amount of revenue lost due to the interruption in business extra expenses could be too big a loss to bounce back from. This is where the new medical catastrophe “contagion” business interruption protection will be necessary.
The AXIS Healthcare Medical Catastrophe Business Interruption and Extra Expense product covers any disease that is contracted through both direct and indirect contact. This innovative product covers diseases that science has yet to discover, as well as those diseases that could mutate into a pandemic some time in the future. Some examples of covered diseases include: bubonic plague, MRSA, Legionnaires’ Disease, Middle East Respiratory Syndrome (MERS), Hantavirus, SARS, West Nile Virus, HIV, Ebola Virus, Marburg Virus, Lassa Fever, Influenza, and Bird Flu.
The maximum length of coverage is 12 months from the date the coverage is triggered.
The policy is triggered to respond when the contagion directly causes any one of the following:
· Governmental quarantine of a hospital
· If 25% or more of the medical personnel are absent from work
· A 25% or more reduction in inpatient stays
· A 25% or more reduction in emergency room visits