United States:
Perception Versus Reality: ACE Adds An Ebola Exclusion Just In Case
24 October 2014
Reed Smith
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The insurance industry reacts not only to real losses, but it
reacts with equal concern to perceived risks, particularly where
those perceived risks could, at least in theory, amount to
significant financial loss for policyholders and/or insurers.
The Ebola "crisis" is the latest example of the insurance
market reacting to a perceived risk that may never amount to an
actual insurable loss. Nonetheless, ACE has taken the
first step in what is expected to be an industry-wide initiative to
prospectively preclude coverage for Ebola-related losses by
adopting an Ebola-specific exclusion that it intends to
"selectively" add to property and casualty insurance
policies. Although ACE's policyholders may never suffer
an actual Ebola-related loss, ACE is leading the charge to ensure
that the perceived risk of Ebola does not become a real financial
loss, at least not for ACE.
This article is presented for informational purposes only
and is not intended to constitute legal advice.
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