insurance has become an essential risk transfer tool.
Technology failures leading to business interruption
are "equally damaging to a company's operations, reputation and bottom-line profits," Paxton added.
Many firms and managers may have business interruption
Microbusinesses have the option of choosing business interruption
insurance that covers both of these perils, which can cause significant financial loss, especially if they occur during a peak operating season.
Commenting on the Report, Allianz Managing Director, Terry Towell, has urged small business to consider the risks of not taking out important business insurance covers such as machinery and computer breakdown, and business interruption
Their suppliers would not have suffered a loss, so there would be no contingent business interruption
Policies usually have a 48- to 72-hour waiting period before business interruption
insurance kicks in.
Ask an experienced insurance broker about deductibles in business interruption
Insurance companies providing business interruption
cover typically provide companies with policies based on sales that would have occurred, not sales that could have occurred, so you will need to have realistic sales and profit projections.
Axa's own research indicates that 90% of businesses are under-insured with one in three having no business interruption
cover to pay wages and other costs if the business cannot operate.
David W Smith of Zurich said: 'Whatever the size of the company, business interruption
has a huge impact.
can originate from a winter storm, the loss of electricity, inaccessibility to a facility for an extended period of time, a hardware failure or software corruption--along with the threats of viruses or hacking and malicious intent from internal or external influences.
Instructed its accounting department to carefully calculate any and all losses sustained including building damage, contents or merchandise damage, business interruption
, lost sales, loss of business opportunity or any other damages attributable to the casualty.
Of the 5,493 business interruption
claims filed as a result of the terrorist attacks Sept.
The insurance industry is starting to make it clear that basic brick-and-mortar insurance coverage plans are different than the plans covering information loss and business interruption
resulting from cyber attacks.