Business Interruption

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Business Interruption

An event that causes a business to relocate or temporarily close. For example, an office may flood and becomes unusable, or a natural disaster may make commerce unfeasible in an entire area. A company may purchase business interruption insurance to guard against losses resulting from this.
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A CHANGING CLIMATE MEANS WEATHER-RELATED BUSINESS INTERRUPTIONS WILL STEADILY INCREASE, MAKING BUSINESS INTERRUPTION INSURANCE ESSENTIAL FOR EVEN THE SMALLEST BUSINESSES.
Both sought insurance coverage for business interruptions.
In the event of a pandemic, Damian Brew, managing director for Marsh in the firm's Financial and Professional Liability practice, would expect to see issues arise from business interruptions due to employee absence, leading to lower revenues and disappointing earnings.
That is, the endorsement usually covers business interruptions that result from physical loss or damage to covered property from a covered peril.
While business interruptions can be triggered by a range of events, electric power interruptions are responsible 70% of the time, according to one source.
Two other industry texts, discussing standard forms using the language "necessary suspension," have acknowledged that coverage exists for partial business interruptions.
They are modelers who specialize in catastrophe assessment and those who advise companies to manage through unexpected crises, or business interruptions.
The Assurex survey found that more than 21% of large employers' systems have been victims of outside hackers, with 15% reporting such attacks resulting in business interruptions lasting from two hours to two days.

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