Last month, the World Health Organization (WHO) issued a warning about the potentially dangerous, rapidly spreading coronavirus that originated in Wuhan City, Hubei Province of China. According to the WHO the public must be “alert but not anxious”. Information is changing by the hour as doctors and officials evaluate how dangerous this outbreak is, and race against the clock to stop it. For those of you who would like the latest information from the WHO, you can visit their website and view the daily Situation Reports.
Taking some precautions now will protect you, your employees, and your organization from the potential exposure to this virus, especially if you conduct business worldwide. Here are a few ways in which you can be alert but not anxious:
- Pay attention to travel warnings. The CDC warns that air travel to certain areas may increase your risk of being exposed to the virus. As countries become increasingly interconnected, it is entirely possible that you may send someone on a business trip to a locale that is less prepared to contain a virus pandemic than the one they came from. Even if that location is taking precautions, there is no way of knowing if their resources are enough.
- Stay informed. Update yourself with information from credible sources the WHO and the Centers for Disease Control (CDC). Only by getting the correct information, will you be able to make the best decisions for your business.
- Review your current insurance plans. Have a risk mitigation plan in place, in case you cannot reach your assets overseas. Does your business plan cover all aspects of a pandemic? Is there an effective risk transfer plan in place?
Crawford recently published an excellent whitepaper on the subject and, in particular, the challenges with insurance coverage applying. Human Pandemic is the fourth most significant risk according to the Cambridge Global Risk Outlook 2020 and could impact almost $49 billion of Global GDP. Examining the risks that such a widespread event could have for you and your business is worthwhile. Looking for ways to transfer revenue risks through insurance is challenging but can be accomplished as Crawford notes in their publication.
If you have any questions relating to these risks or need help with any risk related issues please contact Albert Sica, our Managing Principal, at 732-395-4251 or [email protected].
