There's been a surge in the purchase of cyber insurance over the last few years as clients increasingly acquire it to confront business interruption
risk, Marsh asserts in a new report.
While it's natural to focus on large-scale climatic or even geopolitical events as causative factors, the truth is that even local factors can trigger business interruption
UK-based CFC, a specialist insurance provider, has said that it is now offering business interruption
If a policyholder experiences a loss but does not have cyber business interruption
insurance, coverage may still be available under other types of policies.
Losses resulting from business interruption
can be fairly minor, such as when there is a short electrical outage.
insurance provides essential protection to businesses for loss of income sustained from a covered peril.
The report states that according to an annual IBM study, in the last year, the average cost of a cyber-related business interruption
loss reached $3.7 million in the healthcare industry alone.
Traditional Business Interruption
insurance covers losses tied to events such as fires or natural disasters.
Thereafter, Zurich's appraiser and the original umpire also agreed to an award of $322,445.61 for Omni's business interruption
claim (hereinafter the "Business Interruption
Some risks such as political upheaval, cybercrime and business interruption
were viewed as a greater risk, while natural catastrophes, technological innovation and market stagnation were viewed as having less of an impact.
What we're seeing now is a growing and increasing awareness around the operational risks associated with technology and data--the business interruption
risks, the supply chain risks, the manufacturing exposures, all of the operations of a company that are dependent on technology working right."
Galletto advised that in some instances, advisors located within a geographic area affected by a natural disaster have been subject to regulatory probes geared toward determining whether the BC/DR plans maintained by those firms were sufficient to protect advisory clients from the risk of a business interruption
Globalization, outsourcing and the use of far-flung networks of suppliers and customers put medical device manufacturers at risk of business interruption
, even if they do not feel Mother Nature's wrath firsthand.
"Major loss events of the past years have consistently demonstrated the need for high-quality claims services, specifically in the property, business interruption
, and contingent business interruption
arenas," says Neil Harrison, group managing director, risk control, claims, and engineering at Aon.