What You Need To Know About BI
It is one thing to understand the need for a Business Interruption insurance policy, but what about your understanding of the actual policy itself?
As stated in our series introduction, a Standard Business Interruption insurance policy provides you with coverage for financial losses arising from an insured peril causing insured damage to an insured property. We have seen however, that there are several ways in which your operation can experience Business Interruption. As a result, there are varying types of Business Interruption insurance coverages to address this.
If your business is heavily reliant on other entities, then you should seriously consider Contingent Business Interruption insurance coverage. In the event that one of your customers or suppliers suffers property damage that impacts their ability to provide you with critical inputs, Contingent Business Interruption reimburses lost profits and extra expenses.
We have heard quite a bit about damage and destruction, however, not all business interruption is caused by physical incidents. Market developments, changes in legislation and regulation, as well as macroeconomic developments, can also impact a business’ ability to function, thereby making Non-Damage Business Interruption insurance coverage necessary, especially in today’s integrated global economy.
With cyber incidents ranking third on the 2017 Allianz Risk Barometer Report’s list of top risks, it is no surprise that the interest in Data Driven Business Interruption coverage has increased. Cyber-terrorism, cyber-attacks and cyber-security are terms we now hear and read daily, making it impossible for any business to ignore. As with the other variations of Business Interruption coverage, this provides financial protection in those instances where your operation is crippled by such occurrences.
