Business Interruption Consulting

What is a Business Interruption Review?
A Business Interruption (BI) Review is a short study to identify the scale and location of an organisation’s insurable BI risk exposures and key operational vulnerabilities / interdependencies. This is complemented by a review of BI insurance policy wordings, declared values, indemnity periods, deductibles and policy limits to stress test the cover. The BI Review evaluates the adequacy of current insurance arrangements, and makes recommendations for improvement.

Many organisations recognise that their Business Interruption Insurance is inconsistent with the true exposures of their business only after a major loss. A BI Review focuses upon your company’s BI exposures, evaluating the adequacy of the existing insurance programme and identifying any major gaps in cover.

Benefits

• Compliance with corporate governance requirements, through detailed risk analyses
• Company obtains the best possible insurance terms and pricing for their BI insurance programme
• Smoother claims settlement processes, through a better programme design and structure
• Adequacy and suitability of the Business Interruption insurance to your organisation
• Major uninsured BI risk exposures are identified, limiting the potential for gaps in insurance cover
• Better management of the threats or reality of increased insurance premium and/or restrictions on insurance cover
• More accurate Maximum Foreseeable Loss/Normal Loss Expectancy calculations, to improve your negotiating position at renewal of your insurance programme
• Support for your company’s enterprise risk management and corporate governance objectives
• Support for risk management decisions based on a fundamental risk analysis, allowing you to manage BI risks more effectively
• A customised BI Insurance cover (programme design and wording), to meet the specific requirements of your organisation

Echelon’s Approach
A BI Review involves a comprehensive identification and evaluation of your exposures, both at your own premises and within the wider supply chain. We will assess your insurable exposures, key vulnerabilities and operational interdependencies, and study how losses arise, the resultant business impact of those losses and the ensuing costs.The objective of the Review is to provide confidence in the insurance product and evaluate the best chances of recovering financial losses in the event that the policy is tested by a major claim. You will receive a technical report covering the adequacy of your current policy arrangements, with recommendations for possible improvements. This will include strategic advice on the status of any existing business continuity management programme, making a clear link between insurance and risk management.

Our Experience & Credibility
Echelon’s team has substantial experience managing large, complex and contentious BI claims. Echelon will apply practical lessons learned from handling substantial BI claims to help tailor a programme customised to the organisation’s needs.

For more information on BI consulting please contact Echelon Risk Consulting Asia.