Disruptions to the global airline industry as a result of Iceland’s volcanic eruption have wiped nearly $2 billion off its revenue, with local carrier Qantas saying it’s losing nearly $2 million a day.

The mounting cost of cancelled flights and emergency accommodation for stranded passengers is unlikely to be covered under business interruption insurance, with broker Aon saying most policies only “kick in” when physical damage is cited.

While volcanic ash has been shown to cause damage to aircraft engines, damage would have to actually occur for the business interruption policy to activate.

“If ash falls to earth and lands on a business premises and causes physical damage – for example, blocked-up air pipes could lead to an explosion – then that could trigger a business interruption claim,” Aon Global Risk Consulting CEO Stephen Cross said.

He says the flight freeze across Europe demonstrates the need for business interruption to be “brought into the 21^st century”.

“The ash cloud crisis underlines the importance of this ongoing work.”

Qantas announced on Wednesday it would resume services between Europe and Australia and Asia and Europe. The airline has a backlog of 15,000 passengers, which will take up to three weeks to clear.

Travel insurance provider Mondial Assistance has reassured policyholders stranded by the mass grounding of aircraft they will be looked after.

“Since the start of the disruption on Friday 16 April we have answered more than 1000 calls from people overseas and in Australia about the extent of coverage of their policies and what options they have,” CEO Brett Robinson said.