The Chubb Pandemic Business Interruption Program

There is a better way. Chubb believes that a public–private partnership program can be implemented before the next pandemic that recognizes the differing needs of small and large businesses and will provide:

• Affordability and certainty for small businesses about the amount of financial support available if a pandemic shuts down the economy.
• Quick and efficient payment of a pre–determined sum to small businesses without the need to adjudicate individual claims.
• An incentive to keep people employed, rather than relying on unemployment relief.
• A market–oriented program for larger businesses intended to support and stimulate the private market for pandemic coverage.
• Insurance industry risk-sharing with the federal government, together with a better understanding of pandemic risk, risk mitigation and preparedness, increasing over time.

These are key components of Chubb’s Pandemic Business Interruption Program. The Program has two elements: a program for small businesses that provides an immediate cash infusion when a pandemic is declared and a separate voluntary program for medium and large businesses with losses paid through the existing industry claims adjudication process. Both depend on the federal government assuming a substantial percentage of the risk, through direct U.S. Treasury funding to insurers for the small business program, and through a newly created government–run reinsurance entity for medium and large business losses.