Mitigating Financial Risks in the Face of Numerous Disruptions

The importance of business continuity management in today’s business world is more important than ever before. Your company’s ability to continue operations during and after a major disruption, crisis, or event, from natural disasters and cyberattacks to widening geopolitical unrest is now mandatory. Claims from these events now destabilize commercial insurance coverage and cost, designed to protect businesses from these significant financial losses.

Extreme weather events have become more devastating and caused the commercial property market to experience substantial property losses. During 2022, natural disasters cost the global economy $227 billion– less than half of those expenses ($99 billion) were covered by insurers. This marks the third consecutive year that natural disaster losses exceeded $100 billion. *

*CBIZ

Proactive executives, regardless of industry, know that business continuity is driving commercial insurance. As companies become more aware of the actual or potential risks they face, mission-focused leaders are increasingly investing in business continuity planning with insurance to mitigate those risks and ensure their operations can continue in the event of a disruption.

Experts predict a 10 to 25% increase in commercial property insurance premiums in 2023. Business continuity can weather these storms.

Regulatory requirements and stakeholder expectations also drive companies to prioritize business continuity planning and insurance, particularly since many face legal or reputational risks if they fail to adequately prepare for potential disruptions that result in significant financial losses and a damaged brand.

Business continuity and commercial insurance are closely intertwined, as companies seek to protect themselves from a wide range of potential threats and maintain their operations even in challenging circumstances.

Recovery is always more expensive than the cost of preparedness planning. And not long after, insurance premium spikes will squeeze margins and compromise the overall health of your enterprise. Invest in resiliency and leverage your preparedness to mitigate the increased costs of coverage.