Marsh Launches Global Social Unrest Insurance Solution

London   |   October 24, 2018

Addresses Market Gaps in Non-Damage Business Interruption Cover

Marsh, a global leader in insurance broking and innovative risk management solutions, today launches a new standalone insurance solution that provides financial protection to global businesses following any denial of access to their properties as a result of social unrest.   

As the number of events, including strikes, riots, civil commotion, and terrorism, continue to rise around the world, many organisations find themselves uninsured for the resulting business interruption losses due to the lack of direct physical damage to their properties.

Over the past three years many countries have seen an increase in strikes, riots, civil commotion, and terrorism that do not involve significant property damage. For example, following the 2017 terrorism attack at Borough Market in London, businesses in the immediate vicinity were unable to resume business for 11 days. Marsh estimates that the losses incurred from the kind of non-damage business interruption (NDBI) event that occurred at Borough Market could range from US$750,000-US$5 million.

To close this coverage gap, Marsh’s new Social Unrest solution provides protection for NDBI losses arising from any physical blockade that prevents customers and/or employees from entering or leaving an insured property. The waiting period – or the length of time before the coverage comes into effect – can be as little as 24 hours after an incident occurs.    

Underwritten by Chaucer, Marsh’s Social Unrest solution is available exclusively to Marsh clients and provides limits up to US$20 million for denial of entry/leaving a property caused by:

• A protest, demonstration, or disturbance to the public peace.
• An act of terrorism and/or sabotage.
• Actions of any striker or locked out worker taken to further a strike or to resist a lock out.
• Actions of any civil or military authority for the purpose of preventing, suppressing, or minimising the consequences of any of the above occurrences.
• Decisions made by any lawfully constituted authority in responding to a threat made against persons and/or property, whether or not against a client’s employees or assets.

Justine Mayhew, Head of International Property within Marsh’s International Placement Division, said: “While protests, strikes, and demonstrations aren’t always violent or cause physical damage, they are becoming increasingly frequent in modern society.

“Many standard insurance products have not yet adapted to the evolving nature of these threats and typically only cover business interruption losses associated with physical damage. By covering denial of access arising from disturbances to the public peace, Marsh’s Social Unrest solution helps clients reduce the economic impact of these events on their businesses.”

About Marsh

Marsh is the world’s leading insurance broker and risk advisor. With around 40,000 colleagues operating in more than 130 countries, Marsh serves commercial and individual clients with data-driven risk solutions and advisory services.  Marsh is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people. With annual revenue over $17 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses:. Marsh, Guy Carpenter, Mercer  and Oliver Wyman.  For more information, visit mmc.com, follow us on LinkedIn and Twitter or subscribe to BRINK.