Business Interruption Insurance

By now, we all know how important it is to be able to get up and running as soon as possible after a business interruption. And it's obvious that part of that recovery is having funds available to restore operations. You no doubt have business insurance, but how good is your business interruption coverage? And are you aware that there's contingent BI in case the problem is not on your premises but on that of a customer and supplier? And what about cyber insurance? You can find more information about all these topics in this week's articles.

Business interruption insurance can be as vital to your survival as a business as fire insurance. (Item #1)     In order to better understand business income insurance let's explore three terms you need to know. (Item #2)     Are you familiar with the top five business interruption issues? (Item #3)    

There are very few businesses in the modern world that would not be severely crippled if their network were unavailable. (Item #4)     How much of your company's operations rely on another entity? (Item #5)     The core purpose of Business Interruption insurance, of course, is to offer funding to help cover lost revenue or increased expenses because of the disruption, including short-term financial impacts, but this insurance will only respond if the cause of the disruption is covered within the scope of the policy coverage. (Item #6)    

As always, I look forward to hearing about your concerns with regard to business continuity. If there are any topics that you'd like to see covered, email me at bmellinger@attainium.net.

Bob Mellinger, President
Attainium Corp



1. Do I need business interruption insurance?

Most people would never consider opening a business without buying insurance to cover damage due to fire and windstorms. But too many small business owners fail to think about how they would manage if a fire or other disaster damaged their business premises so that they were temporarily unusable. Business interruption coverage is not sold separately. It is added to a property insurance policy or included in a package policy.
http://www.iii.org/article/do-i-need-business-interruption-insurance


2. Business Interruption Insurance: Eight Terms to Help You Understand What is Covered

Most commercial property insurance policies provide coverage for business income loss by adding an endorsement to the insured's property policy. This endorsement is designed to protect the insured for losses of business income it sustains as a result of direct loss, damage, or destruction to insured property by a covered peril.
https://www.marsh.com/us/insights/business-insurance.html


3. Top Five Issues in Often-Misunderstood Business Interruption Insurance

The high costs related to business interruption should provide an impetus for companies to prep for them in advance, according to industry experts. During a recent webinar hosted by global broker Marsh, insurance experts detailed the top five issues related to business interruption and detailed why risk managers should anticipate all possible worst case scenarios in anticipation of loss.
http://www.insurancejournal.com/news/national/2015/06/03/370268.htm


4. Cyber Insurance 101: Network and Business Interruption

When we think of cyber attacks, stories come to mind like the Russian hackers who broke into Nasdaq's computer networks, or hackers from the same country who reportedly captured more than a billion email and password records. News like that is certainly front page - and it seems to be ever increasing. But there's another side to cyber threats and security that is reported on less frequently, and that is what could happen if a business is unable to operate due to a cyber breach or malfunction.
http://www.wsandco.com/about-us/news-and-events/cyber-blog/cyber-business-interruption


5. Contingent Business Interruption: Getting All the Facts

Contingent business interruption insurance and contingent extra expense coverage is an extension to other insurance that reimburses lost profits and extra expenses resulting from an interruption of business at the premises of a customer or supplier. The contingent property may be specifically named, or the coverage may blanket all customers and suppliers. CBI insurance is also known as contingent business income insurance or dependent properties insurance.
https://www.irmi.com/articles/expert-commentary/contingent-business-interruption-getting-all-the-facts


6. Business Interruption vs Business Continuity

Resiliency is what you have when you coordinate various programs within your organization, ones that support the ability to respond to an adverse event and return to a "business as usual" state, all with minimal impact. Now many organizations have already done their best to be "resilient." They've had program elements in place for a number of years, most commonly Business Interruption insurance and Business Continuity Management. And they may well work well in helping organizations respond effectively to disruptions. But more often than not, the two programs rarely exist as part of an integrated framework.
http://www.citopbroker.com/magazine-archives/business-interruption-vs-business-continuity-7741


Quote of the Week:

"Insurance is the only product that both the seller and buyer hope is never actually used."

-- Unknown

Contact Us:

Attainium Corp
15110 Gaffney Circle
Gainesville, VA 20155
www.attainium.net