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Business Interruption Insurance Efficacy: Five Key Issues


Risk management and risk transfer must work together to make organisations more resilient, as exposure to major disasters and subsequent business interruption increases. Traditional property damage/business interruption policies were never designed to meet the risks faced by organisations today, and the business interruption insurance market has not kept pace with these rapid changes.

Marsh's new report, Business Interruption Insurance Efficacy: Five Key Issues, highlights how the limitations of existing business interruption insurance are resulting in less than optimal coverage for clients, and makes the case for insurance modernisation.

According to the report, published by Marsh's Business Interruption Centre of Excellence, there are five core areas in property damage/business interruption policies where improvements are required. These are:

  • Insured values.
  • Indemnity periods.
  • Wide area damage scenarios.
  • Supply chain.
  • Claims settlement.

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