Coronavirus-related business interruption insurance

The Chinese regulatory authority (CBIRC) has set up an insurance to cover the operating losses suffered by companies as a result of the spread of Coronavirus. The initiative is launched by Hainan Province, in partnership with a dozen insurance companies including PICC, China Pacific Insurance Co and Ping An Insurance Group.

About 100 key companies will benefit from a 70% subsidy on the insurance premium paid by Hainan Province. The latter has allocated 28 million USD for this scheme. The six-month insurance policy will cover production losses, wages paid to employees in quarantine and fees due to the suspension of operations. To date, and in order to slow down the spread of the virus, several activities are at a standstill, including factories and planes that are still grounded.