Unpredictability is one of the most dangerous hurdles for your business. No matter how prepared you feel, there are just some risks you can never predict.
Natural disasters, floods, fires, cyber attacks, unexpected business interruptions count for around 50%-75% of property damage claims, almost double the proportion of just a few decades ago.
Yet just 29% of businesses have developed risk management plans to cope with these unexpected events.
What are the key issues companies are facing?
Natural catastrophes are on the rise
Natural catastrophes are the highest driver on the list for interruptions to businesses. This may well be a reflection of global supply chains, climate change and the concentration of economic activity in catastrophe exposed areas. But each one causes disruptions to the production and delivery of goods and services.
Problems take longer to recover from
Businesses are taking longer to recover from the magnitude of the unexpected. Longer periods of disruption are showing in business interruption insurance, where periods of indemnity can now extend to as much as 24 or 36 months. This is up to three times longer as the previous norm.
The unpredictable world of geopolitics
Brexit is the latest worry to bring us many unpredictable issues when it comes to supply chains. Many UK businesses are now maintaining stockpiles of key supplies while lengthy delays at UK ports are already being affected. This is certainly impacting UK/EU cross border supply chains.
Social changes and environmental influences
Something else that instantly causes supply chain disruption is social and environmental impact. For example, when China suddenly banned the import of foreign plastic in 2018, and waste companies had to suddenly come up with new solutions.
Cyber crime is on the rise
As always, cyber criminals are targeting bigger and bigger companies. They have recently hit FedEx, TSB bank, Maersk, Ericsson who all had to switch to manual processing and production loss.
Protect yourself from the risks that could affect you and your business. As insurance protection experts, we know how to protect you financially from the costly disruptions of these unexpected events. We get to know you, so you are fully covered without being over insured.
For insurance that gives you complete peace of mind, book your complimentary risk review today.