SWG: Allied Health: Infectious Disease Liability

Mar 2023

Infectious diseases are a constant threat to public health, and with recent events we have all been made acutely aware of the potential impact that a sudden rise in the number of disease cases can have on business continuity and societal norms. With this rise, it has become increasingly important for your clients to protect themselves against potential liability claims related to these outbreaks.

In the last two decades there have been many examples where infectious disease liability insurance was needed. Ebola, and the COVID-19 spread exemplify the most notable, and recent examples. With headlines in the news reading “’Gross negligence’: Judge gives go-ahead to COVID-deaths lawsuit against Ontario”, infectious disease liability coverage is becoming a necessity for many industries.

This is where SWG can assist. SWG offers infectious disease liability insurance for your clients in the event that they are held liable for the transmission of an infectious disease. The Infectious Disease Liability product was introduced as a solution to insureds and brokers looking for coverage for COVID-19 and other communicable diseases.

Businesses in the healthcare industry, including hospitals and nursing homes, are especially vulnerable to liability claims related to infectious diseases. However, businesses in other industries, such as hospitality and retail, can also benefit from this type of coverage.

At the end of the day, it is important to be prepared and protected in the event of an infectious disease outbreak. As we continue to navigate new ongoing threats, infectious disease liability insurance, provided by SWG, can provide a valuable safety net for businesses and organizations alike.

Contact us for more information:

Underwriter: Sam Chu

Email: sam.chu@swgins.com

Summary of coverage

– 3rd party Bodily Injury claim coverage resulting from an infectious disease outbreak where negligence has been alleged

– 2 or more people infected at the same location, with the same pathogen, within a 14-day period constitutes as one outbreak

– Each and every outbreak incurs one deductible

– Only 1 person needs to make a claim

– COVID-19 is covered in most instances, along with future variants, subject to policy terms and conditions

– Future unknown pandemic risks are covered, subject to policy terms and conditions

– Hospital acquired infections or locally acquired infections that then develop into outbreaks on the Insured premises are covered

– Defense costs are within the limit

Key aspects of operative clause/cover:

– the bodily injury arises from an outbreak of communicable disease at a specific location; either

o A scheduled Insured location; or

o A location at which;

  • an employee whilst working for and on behalf of the Insured has worked; or
  • Subcontractor working under the supervision of the Insured (for an on behalf of the Insured) has worked.

– the outbreak resulted from or was exacerbated by the Insured’s actual or alleged negligent act, error or omission

– Typical claims made rules apply (retroactive date, ERP, known circumstances to be excluded, etc)


Healthcare Other Industries Not Covered
• Hospitals

• Long Term Care and assisted Living Facilities

• Specialty and multidisciplinary clinics, Individual practitioners

• Associations of practitioners, Miscellaneous medical entities / exposures

• Hospitality

• Accommodation / Food

• Childcare

• Higher Education

• Retail

• Airports

• Events / Entertainment

• Public Sector / Councils

• Wholesale Goods

• Product Recall Related Risks

• Prisons

• Cruise Ships

• Tour Operators

• Standalone or biased EL and WCA risks


Up to $5,000,000 for Healthcare Industries (typically $2M)

Up to $10,000,000 for Other Industries (typically $5M)

Key Exclusions:

– Endemic Disease

o Scheduled as excluded at inception by insurer

o Such excluded endemic diseases will depend on insured track record, country and type of patients/users

  • Note: we intend to cover Covid-19, subject to the above

o For example – Chickenpox, Seasonal Flu, Common Cold

– Non-communicable Illness or Disease

o For example – Cancer, Diabetes, Heart Disease

– Workers Compensation and Employers Liability

– Infections away from the control, management, supervision of the Insured

o The infection has to be passed on within the scope of the Insured location