Willis Group Holdings, an insurance broker, has developed a new insurance product to cover business interruption costs for companies with key locations, suppliers or customers situated in the vicinity of a nuclear power station.
The new product is developed by Willis Global Markets International (GMI), a division of Willis Limited, as a response to the earthquake and tsunami that struck Japan in March and triggered a meltdown at the Fukushima nuclear power plant.
According to insurance broker, businesses may be affected if their own premises, or those of a key supplier or customer, are located inside a nuclear exclusion zone, which will not cover the impact on their business.
Willis said, because traditional Property Damage and Business Interruption policies usually contain a Radioactive Contamination Exclusion Clause, which excludes any damage, denial of access or other consequences arising from nuclear radiation or contamination.
The Willis product is designed to respond not only when a nuclear exclusion zone is imposed following an earthquake or other natural catastrophe, but also when the exclusion zone is the result of other events or failures at a nuclear plant.
GMI CEO Toby Wemyss said the significant business interruption losses in the wake of the Japanese tragedy brought home the importance of protecting your balance sheet against the forced closure of your own premises, or those of your critical suppliers or customers.