Aspen Claims Service

COVID’s Secondary Perils: What They Are and Why They Can’t Be Ignored

 Friday, April 2, 2021

 Risk & Insurance

No doubt, as a seasoned risk professional, you hear the term ‘secondary peril’ and immediately think of natural catastrophes and any subsequent risk they could bring.

For instance, tsunamis are often considered a secondary peril to an earthquake. Likewise, rain fall or flood events are secondary to hurricanes.

But have you considered the secondary perils of COVID-19?

‘As primary insurers, we’ve been mostly focused on the here-and-now when it comes to the pandemic,’ said Sheri Wilbanks, global casualty risk consulting manager at AXA XL. ‘But we have to look a bit further, don’t we? What will the long-term be like?’

At the onset of the virus, and even still today a year later, the focus for insurers has been on business interruption, workers’ compensation implications, canceled events and employee safety and liability. But that won’t be the full COVID picture in a year, five years, ten years or longer.

‘There are a few secondary perils we’ve got to keep an eye on today,’ Wilbanks said.
Risk Management