Medical Catastrophe Business Interruption and Extra Expense

Ebola, Zika, West Nile, Avian Influenza, SARS, MERS, MRSA…the global media is filled with stories of outbreaks and news of emergent viral and bacterial threats to human health. Every outbreak has the potential to put human life at risk and to create economic disruption – especially for hospitals on the front lines of treatment.

AXIS provides medical catastrophe business interruption and extra expense coverage to hospitals – single and multi-location networks – in the United States. The policy provides coverage for any disease that is transmitted by direct or indirect contact. This policy would respond to bubonic plague, MRSA, Legionnaires’ Disease, MERS (Middle East Respiratory Syndrome), Hantavirus, SARS (Severe Acute Respiratory Syndrome), West NileVirus, HIV, Ebola Virus, Marburg Virus, Lassa Fever, Influenza, Bird Flu, and other lesser known viruses or plagues. More importantly, the policy will respond to a disease that has not yet been discovered by science or a disease that may mutate into a pandemic at some point in the future.

Get Started

Kimber Lantry

Executive Vice President


Send Email

Please direct all submissions here

  • Team service approach includes highly experienced underwriters, claims professionals, risk managers and actuaries.
  • Broad underwriting appetite.
  • Policies backed by the exceptional financial strength and solid claims-paying ability of the AXIS group of insurance companies.
  • AXIS is reinsured primarily by Lloyd’s and London Marketplace with a wide diversity of markets.
  • Additional coverages available from AXIS:
    • Property
    • Directors & Officers
    • Cyber Liability and Crisis Management Expense
Products & Capabilities

Policy responsed to all infectious diseases

  • Governmental quarantine of the hospital, or;
  • If 25% or more of the medical personnel (employed or contract licensed health care professionals) do not come to work, or;
  • 25% or more reduction in inpatient days, or;
  • 25% or more reduction in emergency room visits.

Coverage Limits, Terms and Conditions

  • Single and multi-location networks – in the United States.
  • Business Income and Extra Expense.
  • Rated on net revenues per hospital or system depending on location.
  • $1 million sublimit to Extra Expense for disposal of hazardous waste.
  • Up to $50 million per entity or metropolitan area – 160 metropolitan areas defined.
  • $750 million in capacity for US – in increments of $10 million and $5 million multiples thereafter.
  • 72 hour waiting period for Business Interruption.
  • No waiting period for Extra Expense.
  • 10% minimum quota share – can quota share up to 50% with or without captive.
Examples of Medical Catastrophes
  • In the 2003 SARS pandemic, 45% of the infections were healthcare workers. Epidemiological studies identified a hospital ER waiting room as the source of the spread of infection, resulting in the partial or complete shutdown of three Canadian hospitals.  This shutdown created an extra expense loss in excess of  C$12.0M.
  • After the first Ebola patient was admitted to Texas Presbyterian Hospital in October of 2014, the hospital lost $20.3M in revenue over a two-month period, with a decline in inpatient days of 22% and a decline in ER visits of 49% during the first month.
  • During the May-June 2015 MERS outbreak in South Korea, ten hospitals treated most of the 186 individuals infected with MERS. To forestall public panic, the South Korean government refused to release the names of the affected hospitals for three weeks.

Our seasoned team of experts works with customers and their brokers to tailor policies that best fit their unique coverage requirements. We focus on primary and lead excess layers, but can also off  excess or umbrella coverage.

This information is for descriptive purposes only and does not provide a complete summary of coverage. Consult the applicable policy for specific terms, conditions, limits, limitations and exclusions to coverage. Coverage is underwritten by a member company of the AXIS group of insurance companies. Coverage may not be available in all states and jurisdictions.