MunichRE AND EASYJET DEVELOP GROUNDBREAKING CANCELLATION COVER.

An innovative business interruption coverage that protects airlines against financial shocks caused by major flight cancellation has been devised by MunichRe in collaboration with EasyJet.

The policy, which allows an airline to partially reduce its liquidity reserves, provides financial protection against natural events such as volcanic ash clouds, severe winter storms or the grounding of a fleet for safety reasons that are beyond human control.

Natural disasters such as severe winter storms disrupt millions of flights every year costing airlines billions of dollars as a result of cancellations and providing accommodation for air passengers and in some cases paying compensation.

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