It Can All Change in a Flash.
Plan Ahead for Business Interruption.

A natural disaster or other unforeseen event — like a key business partner becoming the victim of a cyber attack — can be devastating to your business.

40% of businesses that close following a disaster never open again,
according to the Federal Emergency Management Agency (FEMA).

While property and general liability insurance cover a number of risks, the main gap you’re still left to fill in is lost income. For example, your property and general liability insurance won’t cover lost revenue from a fire that closed your business and drove your customers to a competitor, nor will they cover lost revenue if supplier issues forced you to halt production.

That’s where Business Interruption (BI) insurance comes in.

To get a better understanding of how Business Interruption works, we sat down with our HUB brokers to get their perspective.

See what we’ve been working on to help keep you in the know and fully covered. Read our latest Broker Insight Report:

How Insurance Oversights Can Lead to Devastating Claims Denials

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How do you use BI insurance to help clients get up and running more quickly following a catastrophic event?

“Many clients underestimate how much money it takes to recover from a catastrophic event. If they don’t have the right Business Interruption co-insurance, they may have a monthly limit on the amount of money the policy provides to get them back in business. The extra expenses covered in your BI policy need to be front-loaded to pay for things like moving, cleanup, overtime, potable water, generators, machinery — anything you might need to get started again. And I can’t stress enough the importance of having an emergency preparedness plan that helps you think through, and plan for, the worst case scenario.”

Robert Zetzmann
Vice President, HUB International

How does a company ensure they receive the maximum BI entitlement?

“When you have a business disruption, your bookkeeper is probably not the best person to help you prepare and submit your insurance claims. Engaging a forensic accountant is the best way to ensure that you receive the maximum entitlement. I recall a case in which a fire at a members-only club led to a significant decrease in membership; the members simply moved to another club. The forensic accounting team was able to get the claim paid by demonstrating to the insurance carrier that this decrease resulted in revenue loss, and should be covered as part of their business interruption entitlement claim.”

Mike Moyer
Senior Vice President, National Claims Manager, HUB International

We’re currently seeing widespread ransomware attacks. How would you recommend your clients use BI coverage in these instances?

“A ransomware attack can be just as costly as physical property loss. There was a recent case in which a doctor’s office had to turn patients away for a week while it tried to recover files being held hostage in a ransomware attack. The recovery cost the office upwards of six figures, possibly more than the hacker had requested. I always encourage my clients to have Cyber Risk insurance with first-party Business Interruption to cover events just like this.”

Michelle Lopilato
Senior Vice President, Director of Cyber and Technology Solutions, HUB International

Let’s work together to tailor a solution to help you recover quickly and drive your business forward.

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