Given below are some examples of the many cases for which insurance has either been given or considered.

HOTEL CHAIN

The management of a chain of hotels realised that events outside of their control, and not causing any physical damage to their properties, could still have a serious effect on their business. Events which could occur and against which protection can be given include Strikes, Riots, Civil Commotions, Terrorism, Repressive or Restrictive Acts by the Host Government, Border Closure, Fire, Explosion, Natural Catastrophe, Perils of Nature of a direct (or indirect) nature, Sudden and Unforeseen Pollution and Contamination, Epidemic or Disease.

HOTEL CHAIN – New Buildings

A strike by contractors working on the construction of a new hotel could seriously interrupt the project to the extent that the opening of the hotel is delayed beyond the contractual completion date. Many lenders/investors now insist that essential debt service obligations are insured in the event that the debtor is unable to meet the scheduled repayments due to the occurrence of Force Majeure events. Alternatively, the hotel owner could insure against the total lost revenue and also additional expenses incurred due to the delayed opening.

TRANSPORT & LOGISTICS COMPANY A company with a contract to deliver supplies to a remote part of Alaska by barge was concerned that abnormal weather conditions could seriously affect the date when the winter ice reappeared. Climatic changes could prevent access to the port of discharge and consequently additional costs would have to be incurred to deliver the supplies by using more expensive means of transport.

SPECIALIST VEHICLE MANUFACTURER

This company was concerned that an event outside their control could prevent, restrict or delay a special piece of equipment from being delivered to their plant which in turn would considerably reduce or possibly even halt production.

CRUISE LINER OWNER/OPERATOR – New Buildings

A strike at the builder’s yard or of sub-contractors or suppliers of machinery and equipment could prevent a new cruise liner from meeting its pre-arranged cruise schedule. Consequently cruises would have to be cancelled and fares refunded to passengers who had pre-booked.

U.S. STEEL MANUFACTURER

A steel company realised that if the supply of raw materials was halted by a strike the company may have to reduce or even cease production. The result would be a loss of production and a loss of revenue while, in addition, they would continue to incur fixed costs during the strike.

AIRPORT AUTHORITY

Income generated by the charging of landing fees, parking fees and for services to airlines would be lost in the event of a strike by an airline using facilities provided by the airport.

STADIUM OWNER

A strike by the players of team sports or a lock-out by the owner of a team renting a stadium for their home matches would result in a loss of revenue for the owner of a stadium.

SHIPOWNER – New Building

Delay in delivery of a new vessel due to a strike while under construction can be insured by the owner for loss of earnings or loss of charter hire and increased costs in obtaining a substitute vessel.

DISTRIBUTION COMPANY

A strike by postal workers, couriers, at ports, airports or even a road blockade could have a serious impact upon this company’s business.

EVENT ORGANISER

Large events require a huge amount of capital investment, which could be lost if the event is cancelled. A strike by a critical supplier of goods and/or services or a nationwide transport strike during the build-up to or during the event could lead to cancellation or the event being open for a lesser period of time. In addition to lost revenue increased costs may be incurred in finding, if possible, an alternative supplier. Exposure of the event to further perils such as riots, civil commotions and terrorism could also be covered.

BROADCASTING COMPANY

A strike by contractors providing essential equipment and/or services could cause a major loss of revenue.

It can be seen from the above examples that the strike action of others, on whom a company relies for the efficient running of its business, or perils outside of a company’s control often results in loss of income or the incurring of additional costs and expenses.