Insurance Might Not Cover Strike-Related Losses

Allianz says business interruption won't help as Germany reels from rail strike

It’s been a busy year on Europe’s picket lines, and some are wondering if the insurance industry can help soften the blow of non-stop strikes.

The short answer: not really.

Read: Nat Cats and Business Interruption Top List of 2014 Risks

Allianz Global Corporate & Specialty posted a brief Q&A on its site, where business interruption Volker Munch explained that BI coverage is of limited help when labour actions hurt a nation’s productivity.

“Unfortunately, conventional P&C and business interruption insurance does not provide cover if the strike results in delivery delays and production downtime. This is because this sort of cover always requires physical loss or damage, e.g. a fire at a supplier that caused the interruption.”

Read: Insurers, Brokers Deal with Fallout from Postal Strike

The questions come as Germany’s train drivers go into their third day of a strike. AGCS notes that productivity losses across the country could top €100 million.

Allianz also used the opportunity to tout its “Non-Damage Business Interruption” policy, which it says is “tailored to suit [its] major industrial consumers.”

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