Values At Risk

The best time to review business interruption values at risk or to do an impact analysis for business interruption continuity planning is before a business suffers a loss.

Business interruption values at risk

There is nothing more frustrating for a business than to discover, after a loss, that it is inadequately covered for a business interruption loss. It is equally important for a business not to over insure their potential losses, paying increased premiums for losses that will never occur. That’s why we encourage all businesses to make informed decisions before a loss occurs by having a values at risk study done before buying or renewing a business interruption insurance policy.

When we calculate values at risk for a business, we create different  loss scenarios.  A business can use these scenarios to determine if they have too much or not enough coverage based on the business’ unique philosophies and tolerance for risk.  A values at risk study allows a  business to see the impact of different waiting periods, deductibles, and sub-limits.  We have found that a thorough review of contingent exposures, of both suppliers and customers, can minimize the impact of a business interruption that is outside of the control of the insured.

Business impact analyses

A business impact analysis is an important part of a business’ continuity plan.  When we perform a  business impact analysis, we identify critical paths within the organization, prioritize their return to service, and dollarize the loss of downtime. In addition, we identify areas for potential mitigation that can be explored and evaluated prior to an incident.