Commercial insurers will not likely have to pay business interruption or aviation claims stemming from the Iceland volcano eruption, as such a rare event is not likely to be covered by the policies, but travel insurance claims for individuals could be paid under certain circumstances, industry experts say.
Early on, after the eruption first forced the cancellation of flights, Gordon Woo, lead catastrophist for Risk Management Solutions, said insurance implications from the Eyjafj?ll volcano eruptions could include payouts from Iceland's national natural catastrophe insurance fund–which covers volcanic eruptions and glacial floods–if there is damage.
Additionally, he speculated that business interruption for the aviation industry could be triggered due to the temporary closure of airspace in the United Kingdom and Scandinavia as a precaution over the airborne ash plume.
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