Business Interruption Review

Given the increasing severity of losses in recent years and the more recent impact of COVID-19, Business Interruption (BI) coverage can be a critical financial tool for protecting business performance and growth, particularly from short-term sudden impacts. Insurers’ recent loss experience has also driven this coverage to be more complex and restrictive. As such, it is critical that your organisation has a strong understanding of its true exposure to BI risk, establishes an accurate values baseline and obtains the right amount of coverage. In addition to this, our Business Interruption Review will help you answer the following questions:

How long would it take my business to recover from an event?
Are there gaps in my current coverage and what adjustments (if any) should be considered?
Do my current internal processes and typical BI worksheet properly capture my risk exposure?
In the event of damage to my business or to a third party, what is the maximum foreseeable loss (MFL) exposure?
What is my organisation’s Anticipated Maximum Business Interruption Loss (AMBIL), which considers variables of potential mitigation actions?

What's involved?

The Business Interruption Review is undertaken via the following steps which can be tailored as appropriate:

Collection and review of data
Business Interruption workshop and interviews to identify critical failure points
Scenario selection and any additional data requests
Declared Value, MFL and AMBIL calculations
Risk exposure and insurance policy review
Report recommendations and roadmap

Who should participate?

Financial Controllers
Risk and Insurance Managers
Operation Managers

How it is delivered

Where a Declared Value (DV) calculation is required, Marsh Advisory can quantify this with the provision of financial management accounts. A detailed Business Interruption Review is delivered through a workshop (in person or video conference), as well as 2-3 interviews as needed.