The memory of empty hotel rooms during the Sars outbreak last year has given rise to a new insurance policy offering cover against the potentially huge financial losses should another epidemic strike.

Launched by insurance broker Jardine Lloyd Thompson (JLT) Hong Kong and backed by American International Group (AIG), the business interruption insurance programme will provide compensation to businesses whose premises are forced to shut down during an infectious disease outbreak.

The programme is the first of its kind offered after the Sars outbreak. At the peak of last year's epidemic, the Peninsula Hotel reportedly had just nine occupants on one particular night.