Preparing for a Pandemic

In June 2009, the World Health Organisation (WHO) raised its alert level on the swine flu outbreak to Phase 6, officially declaring the outbreak a global pandemic - the first such declaration in 41 years.  Raising the alert level does not mean that HN51 virus is more dangerous, just that it is more widespread.

There is a real concern that the effects of a pandemic may push some businesses, which are already struggling in the current economic climate, over the edge.  It is therefore vital that organisations have in place a robust business continuity plan to help minimise any disruption caused by an influenza pandemic.

Some issues that your business should consider include:

  • Establishing a pandemnic co-ordinator and/or team with clear roles and responsibilities for preperation and response planning.  They should review developments in the media and on the WHO website on a daily basis and update instructions to staff as events unfold.
  • Indentifying the critical business activities, key employees and other inputs such as raw materials, suppliers and transportation required to maintain the minimum level of service needed to stay in business.
  • The importance of good communication.  Ensure that all employees are familiar with your business's response plan and their role in it.
  • Checking that your supplier/sub contractors have up-to-date business continuity plans.
  • Reviewing the need for continued face-to-face contact with customers and suppliers and checking whether any restrictions apply to your business travel insurance.
  • Having in place policies and resources for reducing the risk and spread to be ill or become ill in the workplace.

It is unlikely that your property damage insurance will cover any decontamination costs arising from an influenza pandemnic.  As regards your business interruption insurance, if it does have an operative contagious and infectious human disease extension, there is no cover.  Be aware that even if this extension is in force, many insurers specify the diseases cover under it: Influenza is not typically one of the listed diseases and as such, is not covered.  Even if the extension is not on a 'specified disease' basis and instead uses words such as 'a human infectious or contagious disease which a competant authority has specifed shall be notified to them', swine flu is not a notifiable disease in the UK at the current time.  Whilst there are some possible arguments that might be used to extend the list of diseases that are notifiable, the position is unclear.

It has been suggsted that the virus may go into hibernation only to reappear in a more virulent form in the winter.  As such, we recommend you begin testing your business continuity plan immediately to identify and rectify any problem areas in the knowledge that businesses with a robust business continuity plan stand a better chance of working through the pandemic and of recovering quicky afterwards.

 

 

Date posted:  28 September 2009

 

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