Insurer offers to cover loss due to bear intrusions
A Japanese insurance company will begin selling a product for tourist businesses that covers lost profits in an event they are temporarily unable to operate due to bear intrusions.
The product, which will be launched in December by Tokio Marine & Nichido Fire Insurance Co., is the first of its kind in the industry, covering economic damages caused by bear appearances and targeting operators of lodging facilities, golf courses, campgrounds, and other leisure businesses.
Offering full coverage for profit losses caused by reservation cancellations when facilities are forced to close due to bear intrusions, the insurance also covers the cost of installing electric fences to prevent future incidents, as well as the purchase of bear spray to enhance safety, the company said.
Up to 10 million yen ($64,000) will be paid out on the condition that the insured business provides proof of a bear intrusion, such as surveillance camera footage, and publicly announces the facility’s closure, it said.
The insurance premium is expected to be around 100,000 to 500,000 yen per year, though the amount may vary depending on the scale and location of the business, according to a company source.
With bear sightings in the country exceeding 20,000 cases in the six months to September, the company said it developed the new product to help compensate business operators for the economic burden caused by bear intrusions.
The company also began selling an insurance policy in September that provides coverage for damage caused by stray bullets during emergency bear shootings in populated areas.
