Volcano fallout: property coverage potentially available
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. If you incur a direct business interruption or contingent business interruption and you or the supplier can prove it was due to the ash, you may have some insurance coverage. An example is if you depend on electronic components that are made in a clean room environment in North Europe. The ash from the volcano has over taxed the suppliers air filtration systems forced them to shut down. As a result in this scenario, you have lost sales and revenues. If you have contingent business interruption and contingent extra expense coverage, you might be eligible to make a claim.
(Click here for more information from London-broker JLT on the damaging financial impact for airlines).
William Gallagher Associates is a leading provider of insurance brokerage, risk management and employee benefits services to firms with complex risks and dynamic needs, within industries that include technology, life sciences, financial risks, health care, renewable energy & clean technology, and environmental services. WGA has offices in Boston, MA; New York, NY; Hartford, CT; Princeton, NJ; Columbia, MD; and Atlanta, GA.