For a $2 million annual premium, the Association collected last month $141 million when the 2020 tournament was canceled as a result of the Coronavirus pandemic, otherwise leaving the Association devoid of ticket sales and television revenue…………………..
Wimbledon Tennis Collects on $141 Million Business Interruption Policy
One of the principal advantages of a captive insurance program is the ability to design custom coverages to meet specific client needs.
The All England Lawn Tennis Association – Wimbledon – was concerned about risks such as a SARs-type pandemic or the Queen’s death disrupting its June/July 2020 tournament. As such, its risk committee obtained coverage – not available in the standard insurance markets – that provided the Association-specific coverage for these events.
For a $2 million annual premium, the Association collected last month $141 million when the 2020 tournament was canceled as a result of the Coronavirus pandemic, otherwise leaving the Association devoid of ticket sales and television revenue. This $141 million softened the blow. Get the story.
Pandemics have always been a recurring risk dating back to the Spanish Flu (1918-1920) right up to the more recent Avian (bird) flu, SARs, and now, COVID-19.
Commercial policies, almost without exception, exclude these types of losses, leaving businesses having to rely on captive insurance programs. Limited or excluded coverages were seen in the past with pollution, aircraft hijackings, terrorism risks, and more recently, sexual harassment (the “#MeToo” movement), and premises mold coverages. Insureds have a choice: either risk the survival of the business or use a captive arrangement to lessen the blow.
Capstone clients can craft policies with COVID-19 coverage drawing from among the following coverages:
Regulatory Changes
Coverage to protect the insured against compliance and extra expenses incurred resulting from various regulatory changes adversely impacting the insured’s normal business operations from changes in government regulations.
Catastrophic Business Interruption
Coverage to protect insureds for business interruption and extra expenses that result from a described range of natural events such as earthquake, tsunami, flood, hurricane, windstorm, tornado, power interruption, snow/hailstorm, and disease. Pandemic policy riders are also available.
Capstone stands ready to assist our clients in designing a captive insurance program providing custom-crafted solutions for businesses, for once thought unimaginable events.
Please contact Lance McNeel, John Williamson, or Clete Thompson if you’d like to discuss further.
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