WGA InsureBlog

Virtually no airline is insured against business interruptions as a result of the volcanic ash that has grounded aircrafts throughout Europe causing huge financial losses this past week. But there could be some insurance coverage available for other businesses if the volcano eruption somehow adversely effecting your revenue stream. Do you have a plant or supplier in Europe that had to shut down and cease shipping product to you due to the ash cloud? The ash cloud could be considered volcanic action which is a covered peril on many property policies. Read more…

One casualty of the economic downturn has certainly been the confidence of consumers to make investments. Big ticket items ranging from new houses, home improvements, new cars, and even private school tuitions have all shown the impact of the decline in consumer sentiments. The problem, of course, is that consumers are afraid of making new commitments when they fear that they might lose their jobs.

Some companies, Kia Motors was first to the fore, have worked to offset that fear by offering assurances that payments will be suspended should a bread-winner in the family lose their job. Lloyd’s of London has taken this idea to a higher level and is offering insurance for banks, private schools, manufacturers and other entities hurt by this negative sentiment. In return for relatively modest premiums, companies can offer this unemployment insurance to its customers.

So, adversity breeds innovation. And perhaps consumer psychology can be bought for a relatively small price.