Communicable Disease Coverage? How Your Company Can Increase Business Through Differentiation by Michael Boyton
It’s no secret that all insurers try to sell policies with more ammunition in their arsenal than their lowest price policies. Differentiation is one of the most valuable ways all brands — not just insurance companies – can make themselves more attractive to customers. In 2016, one leading property insurer added several enhancements to their all-risk policy form to establish additional differentials to the market in addition to bringing risk mitigation for their clients. One of those enhancements was the inclusion of coverage for Communicable Disease.
Wondering what a Communicable Disease is? “A disease that is transmitted through direct contact with an infected individual or indirectly through a vector.” How does that have any relevance whatsoever to property insurance? It really does not. It does have, however, a link to business interruption. There are established extensions to business interruption coverage in certain markets (e.g. UK) though designed for operations such as hotels, restaurants and hospitals that insure against loss due to murder, suicide, food poisoning and infectious disease. Whereas consequences of such incidents for these types of operations are rather obvious, they may not be for other operations.
While several markets might include this product via endorsement with a very small sublimit (say $100,000), this insurer’s coverage is the first broad-brush enhancement policy-wide. This begs two very important questions: is significant Communicable Disease coverage as part of a property policy here to stay, or is it just a trend?
For the full article navigate to page 22 of the Spring 2017 Pulse by clicking here.
Hot, Fast & Now! by Eric Root
Being the father of three teenage boys, I marvel at their knowledge of technology and the efficiencies it provides. They use their smart phones almost incessantly; whether it be on social media, texting with friends, looking up information (“Just ask SIRI”), and of course playing games. After all, they have practically grown up with this advancing technology at their fingertips.
I cannot forget the moment when, not too long ago walking in New York City, my youngest son stopped in wonder at the strange box along the sidewalk:
“Dad, what is that?”
“Why, that’s a pay phone, son.”
“What’s a pay phone?”
This story can be repeated with other, at one point seemingly advanced, devices such as typewriters, fax machines, tube TVs, calculators, cameras, and even with media such as newspapers or the World Book encyclopedia set proudly displayed on our family room bookshelves. “You actually had to look up the answers in a book?”
For the full article navigate to page 24 of the Spring 2017 Pulse by clicking here.
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