Wednesday, November 7, 2012

From the P&C files: BizInt coverage

Business Interruption coverage helps pay the bills when your store or plant are shut down because of some natural or other disaster. When we think about business insurance, we usually think about fire damage, or flooding, that kind of thing. And of course that's important. But what we may not think about is how the business itself can continue as a result of a catastrophe.

Hurricane Sandy provides an excellent object lesson in how this important coverage works. The folks at Allianz Global Corporate & Specialty has come out with a new study -  “Managing Disruptions” - that "explores how businesses and insurers are re-examining their exposures to business interruption and supply chain risk."

As a friend of mine is fond of saying, we are all connected. So it's not just about a given business, but its place in a supply chain and how that can disrupt other businesses up and down that chain.

It's an interesting subject, and a glimpse into an area of risk assessment and management that we don't often get.

[Hat Tip: Annika Schuenemann]

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