Business Interruption Valuation

Developments in the field of risk management have caused a phenomenal growth in multi-peril and specialist insurance policies for commercial organisations.


Awareness of the value of insurance in today’s modern business environment has led to the need for up-to-date, comprehensive knowledge of insurance matters to ensure the right coverage.

Removing business interruption headaches

Business interruption exposures and the calculation of business interruption values are often a mystery to insureds. Business interruption exposures can be insured by a variety of methods, not all of which are appropriate for all business. Our team conducts a periodic review of a company’s business interruption insurance coverage to determine whether all insurable risks are transferred efficiently where intended.

Benefits of the service

Protection of the shareholder wealth, and an increasing focus on good corporate governance, is dictating the existence of an auditable process, which supports the determination of the correct type and amount of cover. Conducting a detailed review would:

  • Identify and quantify potential exposures present in daily business operations.
  • Enable management to make informed decisions on the appropriate limits of risk transfer for their exposure.
  • Tailoring the business interruption program to address the unique needs of each activity and ensure that risk is transferred to underwriters where intended.
  • Eliminate under-insurance, and the need to fund any business interruption claim shortfall via the insured’s internal capital.
  • Eliminate over-insurance and therefore excess premium payments.
  • Provide the market with a better understanding of the client’s business interruption exposures and present additional leverage to negotiate improved renewal terms with regards to price and extent of cover.
  • Create a model and transfer knowledge which can be used by each business to accurately calculate the appropriate business interruption declared values in future years.


Risk Consulting Experts

Rob Cusack
Director – Consulting Services

Nick Clarke
Business Development - Southern Region

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