Insurance for strike action

Press, 7 December 1988, Page 16

Insurance for strike action

PA Wellington Businesses and workers whose incomes can be put at risk by industrial disputes to which they are not a party, can protect themselves with strike insurance, an insurance company says. The new cover is available through Marsh and McLennan, New Zealand’s largest risk management consultant and insurance broker, the company said

The insurance is underwritten through Strike Risks Management of London by Lloyds. The cover offers protection to innocent third parties caught up in strikes and industrial disputes — and is available worldwide.

The insurance is not available to businesses seeking protection againist strike action being taken by their own employees. The insurance provided is in excess of an interruption period of seven days. After that “waiting period” the policy pays 90 per cent of the loss of

profit or increased cost of operation limited only by the period of insurance selected by the insured — usually six weeks since few strikes lasted longer.

Ship owners and ship charterers have been able to buy strike protection for many years. This is the first time, however, that protection has been made available to landbased risks. The company says inquiries world-wide have included:

® A New Zealand exporter who sought insurance against the delays in shipping live sheep to the Middle East a port strike would produce as this would lead to rejection of the animals.

® An Australian goldmine that would have been disrupted by industrial action in the company that supplied leased equipment. • An advertising agency that wanted protection from the loss of revenue a television strike would produce.