Playing our part; helping clients with their changing casualty risks
In these extraordinary times, companies in all sorts of industries are doing extraordinary things; both to help the global effort to beat COVID-19 and to help to ensure their own survival.
As companies adapt – and adapt quickly – to meet the challenges posed by the global pandemic, their liability exposures are shifting. And the casualty insurance market is adapting too, to help clients survive this crisis and to enable them to change their own business models to help in the fight against the virus.
We are seeing fashion couture houses produce masks, robes and gloves for healthcare workers. Automotive manufacturers have changed production to make breathing apparatus for hospitals. Alcohol distilleries are producing hand sanitizer. Restaurants have transformed themselves and are delivering boxes of produce to customers’ doorsteps. And so on.
When companies change their core activity, their risks change too. On the property side, our Risk Engineering colleagues have been working tirelessly – and remotely – to help clients assess, manage and transfer some of the new risks created by changes in production or the way facilities are being used. Casualty exposures may also have altered as companies have switched to become part of an “emergency industry.”
We have been talking to clients in the automotive industry, for example, who are now producing ventilation systems. There are certain standards to which these systems must adhere for the protection of human life. There are, for example, several EU regulations that govern the manufacture, import and distribution of medical devices. This will mean that a client’s product liability exposure is different – the risks associated with a car are clearly not the same as those associated with breathing apparatus. Underwriters are working with clients to adapt insurance coverage to meet these changing exposure requirements.