Expertise Publication

Overcoming challenges in scoping business interruption insurance in the US

Business interruption insurance is well established and encompasses many different characteristics. Over time, however, various supplementary covers with considerable potential side-effects have crept in. These covers include insurance for interdependent and contingent losses, for power outages and for the financial consequences of prevented access. Substantial risks relating to IT, threats and extortion, and to epidemics in particular, often slip virtually unnoticed into insurance contracts. If a claim occurs, covers of this kind could produce significant accumulations which may not have been taken into account for premium calculation or capacity control.