Strike Risks Management Limited on behalf of certain Lloyd’s Underwriters provides insurance against virtually any strike risk (other than a strike of own employees) anywhere in the world.

This unique cover provides security against the financial effects of strike action by nominated third parties upon whom the Assured relies but over whom the Assured has no control.

Whose strikes can an assured be protected against ?

Strikes or industrial action taken by an independent third party can directly or indirectly affect the operation of an Assured’s business, supply chain, market place or contract. Whether a strike has the effect of interrupting or halting the supply of raw materials or components, essential services such as gas, electricity, water, telephone, post or transport, or if it reduces the capability of the Assured to meet their contractual obligations, the effect on the Assured’s balance sheet can be protected.

The third parties whose strike action could affect the Assured’s business, whether a supplier or a customer, must be nominated and named in the Policy.

It is important to note that cover specifically excludes strikes by the assured's own workforce, or those of any subsidiary or associated companies.

Details required for indication purposes:

To enable an indication of terms to be provided it will be necessary for us to have details of:-

a) the prospective Assured and their business;
b) their annual turnover and annual gross profit figures (if applicable);
c) the third party or parties against whom cover is being sought;
d) past experience of strikes and the likely impact of the third party strike action on the Assured’s operation;
e) the seasonal nature, if any, of the Assured’s production schedule (any peaks or troughs);
f) any stockpile or alternative arrangements the prospective Assured may have as protection should a strike arise.

Indemnity

Any strike action by a third party lasting in excess of a few days is likely to have an impact on the Assured’s business operations, whether that be in the form of loss of revenue, loss of gross profit, delay penalties, increased costs of working or other specific losses.

Any such loss can be insured, and policies can be effected for periods of up to 36 months and with the indemnity period in respect of a strike for as short or long as appropriate. Thus, the indemnity period and insured amount will be tailored to the Assured’s needs.

Rating

There is no set rating schedule, each case is judged entirely on its own merits, with indications given as to terms and conditions which will be appropriate to the risk being considered. However, before indicating terms, we will almost certainly wish to verify, through our local connections, the current situation of the country, union activity and third parties to be covered.

Key Points

a) CONFIDENTIALITY: Discussions surrounding any enquiry, and if effected, a Policy, should not be disclosed to any party other than the Assured’s insurance broker or intermediary, at any time without prior consent from Underwriters. Failure to abide by this warranty may cause negotiations to be terminated or, if a Policy has been effected, invalidate the Policy.

b) EXISTING CIRCUMSTANCES: Neither an indication nor insurance will be given if strike action has already been threatened or is actually in progress. However, an indication or insurance can be given to exclude those existing circumstances with any subsequent and unrelated strikes being covered.

c) VALIDITY OF INDICATION: Any indication will only be valid for a specified period of time, depending upon existing circumstances, and in any event will be subject to Conditions of Quotation (Contingency) NMA 2391.

d) PROOF OF LOSS: In the event of a claim, the onus of proof rests with the Assured.

The insurance is fully underwritten at Lloyd’s of London.