Establishments Warned to Cover Against Epidemics

January 14 - As the excitement leading up to the World Cup in South Africa this year mounts, many are taking a slightly more practical view to the event and are warning establishments of possible worst case scenarios, to ensure that they maintain sufficient cover.

Risk management is hugely important for the South African leisure industry to protect itself against loss and even litigation in the case of mass epidemics breaking out this year.

Riette Fern, speaking for Alexander Forbes Risk Services, said that thousands of people from high risk countries would be visiting South Africa during World Cup season, and the spread of diseases such as meningitis, Congo Fever, yellow fever and hepatitis was a possibility.

"Businesses, governments and especially the leisure industry need risk management plans that address the consequences of pandemics or even normal disease spread," said Fern.

Cancellation due to pandemics - or even the fear of a pandemic - seems to be the biggest risk faced by the leisure industry this year.

Fern says that to meet the challenges face the industry, as well as governments, there are several types of cover that should be examined.

One type of cover deals with general business interruption by providing compensation in case of mass cancellation due to events that happen elsewhere.

Fern presents the scenario of several cases of an illness breaking out in a number of hotels, and as result, mass cancellation of bookings take place in many other hotels.

"Even though nothing happened at your hotel, the South African Special Risks Insurance Association (SASRIA) will not compensate your for your cancellations," she said.