Most Common Causes of Business Interruption
Every day, businesses are faced with risks that can potentially affect their operations. This is why it is crucial to create and implement a strategy that will address the biggest threats within your specific industry. While we cannot foresee most accidents and/or tragic events, we can do our best to practice preventative measures to prepare for the worst. In this blog, we will cover the most common causes of business interruption you need to be aware of.
Winter weather can create various issues for companies to combat. Heavy precipitation such as snow, hail or rainfall can lead to power outages, transportation issues, and other logistical matters that can affect a business’s ability to run smoothly. Closures due to inclement weather can greatly affect a business’ profit, as their operating expenses do not get delayed because of weather conditions.
Fires or Accidents
In the event of physical losses, such as a fire or natural disaster, business operations and income will inevitably come to a halt. If your business’ building or merchandise becomes damaged or destroyed, you may find yourself liable for the funds it takes to replace or repair. It can make getting your business back up and running a more challenging task than necessary.
Cybercrime continues to threaten online users unfamiliar with the risks they cannot see. Cyber criminals have the ability to plan digital attacks from anywhere in the world, which can completely shut down servers or websites pertinent to business. A ransomware attack can even leave you subject to a hefty fine before you may be able to access your data again.
Risk assessment and management may not prevent these causes of business interruption, but the right insurance policy can mitigate some of the liability. By planning for the biggest threats ahead of time, you will have a strong strategy in place to get you back on track. If your business does not hold a business interruption policy, which is a critical risk management tactic, contact TCE today. We’re here to help.