Global economy fuelling more business interruption

Categories: Big picture
Published on: December 11, 2015

The Guardian / Pamela Duncan / 11 December 2015

Businessinterruptiontop10The cost of business interruption is on the rise with the average cost of claims between 2010 and 2014 exceeding €1m, according to a report.

Research by Allianz Global Corporate and Specialty states that the increase is due to the ever greater interconnectivity of the global economy. A fire or a flood in a factory in one region, for example, causes a knock-on business interruption elsewhere, not just for the company itself but also for other businesses unable to operate because of the effect on a supplier.