Analyzing Exposures Before a company can determine what kind of coverage it needs, it must understand its exposures.


“I think it really starts in the preplanning phase, where you’re getting the right people in the room.”


Gerald Kissner, Zurich


The first step in any discussion of coverage needs is a detailed analysis of exposures. An insurance broker will want to know if the company is global in scope, where it sources equipment, if production of its product incorporates another company’s product, and if other companies depend on its product as a component in their own. Analyzing business interruption exposures requires a team effort. The team must include not just the risk management staff, but also the people who will have to deal with resuming operations in the event of a loss. It also should include the procurement staff who understand the supply chain and the finance experts who understand business income values.


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.


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