On September 30, 2025, the province of Cebu in the Visayas was hit by a magnitude 6.9 earthquake. Lives were lost and properties suffered significant damage. Businesses across the affected area immediately halted operations as the powerful tremors brought everything to a stop.
What grabbed headlines, however, were reports of several companies, mostly in the business process outsourcing (BPO) industry, insisting that their staff return to work immediately after the shaking stopped. The reason given was that customer calls and similar service-related jobs were piling up in queues. Affected employees complained that the situation remained risky due to aftershocks and the possibility that their workplaces were unsafe. The government conducted an investigation following public outcry over the incidents.
This highlights the vulnerabilities businesses and employees face during such catastrophes, and raises the question of whether work stoppage insurance can help mitigate their effects.
Work Stoppage Insurance for Employees
The short answer is that most standard insurance plans do not cover work stoppage issues unless you add it as a rider to your existing policy.
At the very least, the coverage provided by employers usually only applies to health-related issues. If you are injured during the disaster, that will most likely be covered. If you go to an accredited clinic, the costs of consultation and medication can fall under your employment insurance.
You can obtain a policy that includes work stoppage insurance as a rider. It will note what kinds of work stoppages are covered and how much you will be compensated for the loss of income.
Philippine labor law provides a certain level of coverage in the event of disasters. Republic Act 11048 covers occupational safety and health standards. Section 23 states how your employer is required by law to pay your wages for the duration of a stoppage if it was caused by any violation of RA 11048.
The same holds if the government calls for a work stoppage due to imminent danger, like with severe typhoons, or if a safety inspection shows a facility is unsafe. Your salary will still be paid by your employer during the period work is on hold.
Work Stoppage Insurance for Businesses
Businesses can also obtain protection from work stoppages in the same manner as individuals through a rider added to an insurance policy.
These policy riders are called business interruption insurance or business income coverage. It is almost always not sold separately, but is added to a property policy or included in a comprehensive package plan. If your business has one of these insurance plans but lacks the rider, you cannot rely on your insurance to cover losses from a work stoppage.
A key term often found in coverage like this is that the cause of the work stoppage must be temporary, with the trigger events defined at the purchase of the rider. Often, triggering events include disasters like the September 2025 Cebu earthquake, but some policies can cover instances like civil unrest or an extreme health situation like the COVID pandemic.
Depending on the terms of your policy, it can cover operating expenses, payroll taxes, loan payments, and even the cost of moving to a temporary business location.
Stay Prepared: Protect Your Income and Operations
Disasters and other disruptions to daily life and business operations remain uncommon, yet they are no longer unusual. The Philippines is visited by an average of twenty storms in a year, and at least one has been a Category 5 every year for some time now. Employees are also vulnerable to a variety of events that can lead to a suspension of their source of income.
Knowing that you or your business is protected from the adverse effects of work interruptions provides peace of mind, especially with the right work stoppage insurance in place. While disasters and other hazards cannot be accurately predicted, a properly planned policy can provide you with coverage to handle any eventuality.
Contact Information for Inquiries and Support
If you have any questions or need assistance with your insurance, feel free to reach out to us:
- Call: +63 2 8631 9285 to 86
- Mobile: +63 917 138 5120
- Email: info@reliable-insurance.ph
- Messenger: m.me/reliable.insurancebrokersph
Sources
- Relief Web (2025, October 2), Philippines Earthquake Situation Assessment (1 October 2025)
- Investopedia (2025, May 4), Business Interruption Insurance: What It Covers, What It Does Not.
- Labor Law (No date), R.A. 11058: Occupational Safety and Health Standards.
- Employer’s Compensation Commission (No Date), Frequently Asked Questions.
- Respicio & Co. (2025, July 22), Employer Responsibility for Work-Related Injuries in the Philippines.
