According to FEMA and the Small Business Administration, 40% of businesses donot reopen after a catastrophe or other disaster, and another 25%fail within a year.
|What can businsses do to help their chances of surviving anincident?
|The answer is business interruption coverage. Also known asbusiness income insurance, business interruption insurancecompensates policyholders for lost income if their company has tovacate its premises due to disaster-related damage that is coveredunder a property insurance policy, such as natural catastrophes,supply chain disruptions or cyber risks.
|Two in five businesses have suffered a business interruptionloss in the last five years, according to the 2017 RIMS Business Interruption Survey.Additionally, a 2015 Nationwide survey found that 66% of smallbusinesses, generally identified as those with 50 or feweremployees, lack business interruption coverage.
|“Many businesses are often unaware of the true costs and impacta business interruption can have on their operations without theproper coverage,” said Loretta Worters, a vice president of theInsurance InformationInstitute (I.I.I.). “Many businesses do not survive becausethey either lack coverage or have inadequate limits for thatcoverage.”
|See the infographic below from I.I.I. for more stats aboutbusiness interruption insurance.
|
From: PropertyCasualty360
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
