Prepare for the Loss


The increasing complexity of today’s business model makes business interruption insurance that much more important, and as the business model changes so will the risk.


“Take up rates tend to be fairly low for BI insurance, and it shouldn’t be because it’s critical to businesses’ survival.”


Stephen Clarke, ISO


There is growing awareness that a supply chain disruption can be catastrophic. A broad-based team with a cross-functional view of the company’s risk will help to develop an effective risk mitigation strategy. Having close communication with its broker and insurer, a business will be able understand all of its exposures and how its insurance coverage will respond in the event of a loss. Having a strong, knowledgeable team to execute the business continuity plan is also crucial for an effective response. Despite the increasing awareness of risk, relatively few businesses invest in the type of coverage designed to protect their income statement in the event of a loss.


Copyright © 2012 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18