19 Dec Is Your Business Covered Against Business Interruption?

Is Your Business Covered Against Business Interruption?

Does your business insurance package include business interruption? If not, now is the time to consider purchasing some if the latest Allianz Risk Barometer is anything to go by.

The risk barometer, which aggregates the views of nearly 2,000 risk management experts across 80 countries, has again ranked business interruption cover as the most pressing business risk – the sixth consecutive year it has held the position.

It is easy to see why business interruption ranks so highly as a business insurance priority; businesses face innumerable situations in which even just a single event can interrupt the operation of a business, potentially taking away vital cash flow.

Situations in which having business interruption cover can prove beneficial include the usual suspects – for example, floods, fire, snow or supply chain disruption – and new and emerging threats such as cybersecurity breaches and online and internal network failures.

However, not all business insurance providers consider all of these situations under a single umbrella, so it is vital that you check with your insurer to ensure that your business is covered against all business interruption potentialities. For example, some policies might provide cover for business insurance caused by a cybersecurity breach while others will require you to purchase cover specifically designed for the purpose.

Furthermore, it can sometimes be difficult even proving that a cyber-attack has caused interruption. Charlotte Worlock, from international legal firm Clyde & Co, explains, “Physical damage BI is easy to prove. Your service goes down as a result of a fire, and that’s a relatively straightforward claim. Non-physical harm is much harder to evaluate. Property policies usually provide all risk BI cover, whereas cyber policies generally require a specific trigger. That trigger might be a system failure, network disruption, involuntary shut down, contingent BI and so on. The issue is that each of those definitions can differ from insurer to insurer. There can be all sorts of nuances with respect to different insurers’ analysis of when a non-physical damage trigger has been met, whereas physical damage BI is a lot more straightforward to cover.”

Tredstone, for all your business insurance needs

Tredstone may be able to help you save time and money when it comes to finding and securing your business insurance so that you and your clients can be protected with confidence and convenience.

Whatever your trade or area of business you can be sure that Tredstone’s world-class insurance services will work in your interests. Contact us today for help, information and a quote.