In the midst of news about the government shutdown being resolved, not much news is being devoted to the state of the economy. This is probably good news for businesses looking to take advantage of the new tax reform law, and it is also a sign that the economy is in good shape.
But even in sound economic times, businesses must prepare for when problems arise, because no one can predict when disasters will strike. That is why insurance policies and contingency plans are increasingly important.
A recent survey conducted by Allianz Global Corporate & Specialty exemplifies this point. Respondents to the survey overwhelmingly indicated that business interruption was the most important risk facing companies today. While this may seem obvious, other business risks are equally compelling. Respondents also noted that cyber incidents were the second most concerning risk to businesses, and the most feared trigger of business interruption. Five years ago, cyber attacks ranked 15th on the list of potential risks to businesses.
Meanwhile, natural disasters ranked third of the most important risks to businesses, likely due to the aftermath of the recent hurricane season. Total losses from hurricanes Harvey, Irma and Maria are yet to be tabulated, but business interruptions from loss of power are classic examples of why natural disasters are concerning.
As such, it is critical for businesses to be cognizant of the extent of coverage and continue to have discussions with insurers about different scenarios and events that may trigger coverage.
The preceding is not legal advice.