Business interruption insurance – avoiding financial distress

Such extreme events frequently lead to financial losses for the client. HDI’s business interruption insurance ensures that companies do not suffer financial distress in the event of a loss. Insurance cover can be structured in such a way that the company can recover to its pre-damage event financial status.

Scope of services at a glance

Business interruption insurance

HDI helps companies to assess business-interruption risks based on production outages. If required operational supply chains can be factored into the analysis. Cover is provided by HDI’s business interruption insurance, which complements HDI’s property insurance.

  • Insurance cover can be tailored to include specific risks or categories of risk as required. The latter includes, for example, damage caused by natural hazards, such as flooding or storms.
  • Current overheads, such as salaries, rents and interest on capital, as well as profit setbacks are insured.
  • Business interruption insurance plays a major role in ensuring a company’s long-term performance capability.
  • Using business interruption analyses, HDI’s Risk Consulting experts can identify areas of a company where disruption or outages can lead to production interruptions or business closure.

Natural hazards

Source: GDV

Billions of Euros worth of damage is caused every year by natural hazards. For most companies insuring against damage caused by natural hazards is a standard component of business insurance cover. In this regard HDI not only helps companies to insure against risks but also provides support to companies at their sites , for example in selecting locations and implementing damage limitation measures. Our experts use the specially developed ARGOS (Accumulation Risk Geospacial Online System) software programme for this purpose. This analytical tool enables risk exposure for specific locations to be assessed. Residual natural hazard risks can be insured by an EC (Extended Coverage) insurance policy to complement industrial property insurance or ‘all risks’cover.

Experts’ tip

Targeted avoidance of loss of sales and income

Are you aware of your suppliers’ and upstream suppliers’ dependencies? Using our supply-chain analysis tool, we can identify those areas where an increased risk of contingent business interruption (CBI) losses exists and advise how clients can counteract these risks.