Aon has warned businesses to wake up to the potential risks of a flu pandemic.

A sense of complacency regarding the impact of a flu pandemic could leave many businesses unable to operate in the event of an outbreak says the broker's report on the issue - Pandemic Influenza: Exploding the Myths.

Lloyd's underwriters have also warned that traditional business interruption products do not respond to the effects of flu, potentially leaving a firm short on cover should a pandemic strike.

Steve Pearce, director, Global Crisis Management, Aon Corp, said: “A sense of complacency seems to be creeping in. Although we are seeing less column inches devoted to the issue, statistics from the World Health Organisation (WHO) demonstrate that the H5N1 virus, which is causing the most concern, is becoming increasingly fatal, having now spread into 10 countries compared to just four a year ago.

He added that a step change is required in risk management measures across the globe to ensure that preparations are maintained at the highest possible level for countries and their business communities.

“Our white paper underlines how vitally important it is for businesses to take responsibility and mitigate where possible the pandemic risks facing them,” he explained. “Business continuity plans must provide a tailored framework for companies rather than relying on more general government defence plans - which may be inadequate to cover business exposures - or advances in vaccines and anti-viral production, which are untested.”