To cover losses incurred when smoke from wildfire results in hazardous air quality

Lexington Insurance has introduced Lexwildfire smoke, an endorsement that extends its commercial property insurance to cover losses incurred by higher education accounts when smoke emanating from a local wildfire results in very unhealthy and hazardous air quality that disrupts a policyholder’s outdoor operations.

The company claims that the coverage is for scheduled locations when a state or local public health entity or other authorized official issues an air quality alert with a rating of very unhealthy or hazardous or an air quality index of 201 or greater or a PM2.5 24-hour average of 140.5 ug/m3 or greater. Lexwildfire smoke is available with sublimits up to $5mn by endorsement to Lexington’s commercial property insurance policies.

Lou Frascotti, senior vice president of Lexington Insurance Company, said: “Even educational institutions located away from the immediate physical danger of a wildfire can suffer significant losses because of smoke. While unhealthy ambient air quality is a concern to all businesses in the area of a wildfire, it can be particularly costly for those with outdoor activities, such as colleges and universities holding sporting events. LexWildfire Smoke responds to the reality that significant losses can arise even absent direct physical damage.”