Marsh brokerage urged a variety of preparedness steps for companies including checking language on insurance policies and monitoring "the possibility of government intervention, ranging from mandated shutdowns of factories and offices to increased scrutiny of goods and people at border crossings, random quarantines, and social isolation."

U.S. Department of Health and Human Services Secretary Kathleen Sebelius and U.S. Department of Homeland Security Secretary Janet Napolitano, in a joint statement, said the WHO decision "was expected and doesn't change what we have been doing here in the United States to prepare for and respond to this public health challenge."

"Once we saw how fast this virus was spreading, we activated our pandemic plans and started doing all the things we needed to do to keep the public as safe and secure as possible," said Secretary Sebelius.

"What this declaration does do is remind the world that flu viruses like H1N1 need to be taken seriously. Although we have not seen large numbers of severe cases in this country so far, things could possibly be very different in the fall, especially if things change in the Southern Hemisphere, and we need to start preparing now in order to be ready for a possible H1N1 immunization campaign starting in late September," she added.

Gary S. Lynch of the Marsh Pandemic Response Center and global leader of the Supply Chain Risk Management Practice said, "With the declaration of the pandemic, public and private organizations should seek to finalize, validate, and test their business continuity, supply chain resiliency, and crisis communications plans, so they will be able to cope more effectively with any potential jurisdictional and economic consequences.

He said, "Industry's ability to respond to the challenges posed by a pandemic may be complicated by the global economic recession, which has led to significant reductions in workforce, streamlining of supply chains, and cutbacks in operations."

According to Marsh, businesses besides being alert to possible government intervention should be concerned about their ability to source goods and maintain operations and service levels around the world.

Mr. Lynch said in a statement that businesses should update their continuity plans in light of the pandemic, ensuring that their trading partners do the same.

He advised that planning should include:

o Pre-defined business priorities and decision modeling that accounts for interdependencies.

o A process for orderly shutdown or reduction in service based on a decline in demand, unavailability of labor force, absence of raw materials, or failure of critical infrastructure services, such as public health and safety, energy, sanitation, communications, and transportation.

o Recovery, restoration, and resumption plans that address all key processes and resources and define desired recovery times.

At a minimum, these plans should include alternative methods for sourcing materials and products, alternative workforce, and work-at-home policy.

Mr. Lynch also said that the pandemic should cause organizations to review and update a crisis and continuity management pandemic plan, including policies for business travel, locating staff, social-distancing, isolation procedures, and an alternative workforce.

Additionally he said businesses should have a physical and behavioral health policy for managing infected personnel and premises as well as hygiene and medical screening policies, anti-viral medications, health care support (e.g. anti-bacterial sanitizer, masks), and procedures for dealing with emotional impacts.

Companies, he said should have available the specific insurance policies (e.g. supply chain pandemic coverage, general liability, U.S. workers' compensation and benefits, U.K. and European employers' liability, and property) under which a claim might be made as many variables might affect potential recovery.

He listed variables as period of restoration, waiting periods, distance limitations, sublimits, modification of language from the basic form, definitions, deductibles, and other policy conditions, including contamination and other exclusions.

Marsh noted that during the past several weeks, many organizations have updated their pandemic plans with regard to social, health, economic, and security impacts as evidenced by such measures as: requesting that employees returning from infected countries remain at home for three to seven days; restricting employee business travel; activating accountability systems for employees and members of household; and reviewing work-at-home procedures.

John Merkovsky, global leader of Marsh Risk Consulting, warned that "based on the world's past experience with pandemics, businesses need to prepare for the possibility of a recurrence of H1N1 later in the year and for future pandemic outbreaks."

The brokerage said it is offering a variety of services to cope with the pandemic including a free Webcast, "H1N1 Flu and Pandemic Preparedness." accessible by registering at http://global.marsh.com/news/articles/mediafiles/register.php.