CHES Special Risk Launches Innovative Infectious Disease Liability Insurance

TORONTO, ON, SEPTEMBER 9, 2024/insPRESS/ – CHES Special Risk is pleased to announce the launch of its new Infectious Disease Liability (“IDL”) policy. This groundbreaking product is designed to address the growing need for comprehensive protection against liabilities arising from the spread of infectious diseases, offering businesses and organizations a vital safety net in today’s health-conscious environment.

Past incidents vividly illustrate the severe impact infectious pathogens can have on businesses. For example, 72 guests filed a $5 million lawsuit against a spa following a staph contamination. In another case, charges were brought against daycares after an E. coli outbreak, resulting in class action lawsuits and personal injury claims. These examples underscore the devastating financial and reputational consequences businesses can face due to infectious disease outbreaks.

Gary Hirst, CEO and President of CHES Special Risk, emphasizes the significance of this new offering: “In the wake of recent global health events, businesses face unprecedented challenges in managing the risks associated with infectious diseases. Our new Infectious Disease Liability Insurance provides essential coverage, helping organizations protect their employees, clients, and reputations while navigating these complex times.”

The IDL policy from CHES Special Risk offers comprehensive coverage to address the gaps left by Communicable Disease and Pandemic Exclusions. Key features of this policy include:

Coverage for third-party bodily injury claims resulting from an infectious disease outbreak where negligence has been alleged.
Definition of an outbreak as two or more people infected at the same location with the same pathogen within a 14-day period.
One deductible per outbreak, regardless of the number of claims.
Coverage for claims made by just one person.
Inclusion of COVID-19 coverage in most instances, along with future variants.
Coverage for future unknown pandemic risks.
Coverage for hospital-acquired infections or locally acquired infections that develop into outbreaks on the insured premises.
Defense costs within the policy limit.

CHES Special Risk’s Infectious Disease Liability Insurance is designed for a wide range of industries, including hospitality, healthcare, education, retail, and more. By offering tailored coverage options, CHES Special Risk ensures that businesses can secure the specific protection they need.

“Humans constantly live and work in the presence of infectious pathogens,” said Gary Hirst. “While we often fend off minor infections without long-term effects, pathogens can also cause severe outbreaks. The rise in zoonotic diseases and global travel has significantly increased the likelihood of pandemics, as we’ve seen with COVID-19, Ebola, and SARS-CoV-1. Our new IDL policy is essential in providing businesses with the certainty of coverage they need in these challenging times.”

The pandemic underscored the importance of preparedness, demonstrating that while adapting to new norms can be a lengthy process, learning from past experiences and implementing robust risk management strategies is crucial. As the saying goes, ‘Fortune favors the well-prepared.’ This policy is designed to deliver comprehensive financial protection, allowing businesses to operate with greater assurance and resilience.

The CHES Special Risk IDL policy is a vital tool for businesses to safeguard against the financial and operational disruptions caused by infectious disease outbreaks. By providing affirmative coverage, this policy ensures that businesses are prepared to handle the uncertainties of infectious disease spread, thereby securing their long-term sustainability.

For more information about the CHES Infectious Disease Liability policy, reach out to the team at Info@CHESspecialRisk.ca.

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ABOUT CHES Special Risk Inc.

CHES Special Risk Inc. was established as a Managing General Agent and Wholesale broker in 2004, in response to broker demand to a hardening marketplace, commencing with a particular specialty in the entertainment and hospitality business, later becoming a fully accredited Lloyd’s cover holder in 2009. CHES Special Risk and Sister Companies are a fully Independent MGA delivering “A” rated capacity both in the hard to place, and standard lines classes and support their retail brokers in growing and developing their businesses.