Aon Risk Solutions announced in a press release Monday that it would be offering bed bug insurance to landlords, hotels, student housing providers, businesses and leisure travelers:
In response to the growing bed bug epidemic, Aon Risk Solutions, the global risk management business of Aon Corporation (NYSE: AON), announced today its strategic alignment with Global Excess Partners, an innovator in the insurance specialty products business, and Terminix, the national leader in pest control services, to unveil the first ever bed bug insurance solution for hotels, landlords, student housing, corporate businesses and leisure travelers.
This suite of products offers an integrated pest management approach to specifically target bed bugs and combines insurance coverage with Terminix’s specialist bed bug elimination resources to deliver cost savings and greater budgetary certainty while successfully treating and protecting premises.
The insurance (subject to the terms of the policy) would offer a number of benefits including coverage of treatment, recovery of lost revenue (for hotels taking rooms out of service for treatment). Because bed bugs can lead to huge unplanned expenses, there is a definite market for this.
Timothy Wong of M&M Environmental told Crain’s New York, “This is like living in Florida and finding out insurance companies are now covering floods.”
There’s also surely a market for bed bug insurance for consumers (outside of leisure travelers).
I hope that in the future, consumers and business owners might be able to buy bed bug insurance which allows them a choice of treatment providers.