What else is business interruption called?

BI, loss of profits, consequential loss, business income.

When does business interruption respond?

An insured property loss halts production or trading and the income stops while the costs continue.

Which industries usually carry business interruption?

Food manufacturing, General manufacturing, Logistics and warehousing, Retail, Hospitality, Mining and resources, Property owner, Energy and utilities, Wholesale distribution.

What does the register compute for a business interruption line?

The deductible retained per claim and, with a claims count, per year; the limit less the deductible the insurer carries; the premium as a share of the limit; and the three-year loss ratio where claims paid are given. Flags where the limit was never claimed against, the rate on line is far above the schedule median, or the retention sits below the claims frequency.

Every line of cover · Property

Business interruption

The gross profit or revenue you lose, and the extra cost of keeping the business going, while property damage stops or slows you, for the indemnity period the policy states.

On the schedule

Also called	BI, loss of profits, consequential loss, business income
Family	Property
Responds when	An insured property loss halts production or trading and the income stops while the costs continue.

Which industries carry it

Usually held by	Food manufacturing, General manufacturing, Logistics and warehousing, Retail, Hospitality, Mining and resources, Property owner, Energy and utilities, Wholesale distribution
Often needed, often lacking	Professional services, Software and SaaS, Healthcare provider, Agriculture, Education, Financial services, Non-profit, Transport, Media and marketing, Public sector

Standards this line engages

8 clauses

Clause text quoted from a human-verified compliance corpus under licence. Clauses marked for APRA-regulated buyers or US insurance licensees appear on a register only for those buyers.

ISO 22301 8.2.2 Business impact analysis

Use the impact analysis process to set continuity priorities and requirements: define the impact types and criteria relevant to the organization's context, identify the activities supporting delivery of products and services, assess impacts over time from disrupting those activities, fix the point at which non resumption becomes unacceptable, set prioritized...

Evidence an auditor accepts: Defined impact types and criteria approved for this organization; Activity inventory mapped to products and services; Impact over time analysis per activity
Common gap: Recovery time frames set by aspiration and never reconciled to the impact analysis that should produce them
ISO 22301:2019 on compliance.theartofservice.com

ISO 22301 8.2.3 Risk assessment

Implement and maintain a risk assessment process that identifies the risks of disruption to the organization's prioritized activities and the resources they require, analyses and evaluates those risks, and determines which of them require treatment.

Evidence an auditor accepts: Documented risk assessment process; Risk register scoped to prioritized activities and their required resources; Analysis and evaluation records with the criteria applied
Common gap: Risk register covering the enterprise generally rather than the prioritized activities specifically
ISO 22301:2019 on compliance.theartofservice.com

ISO 22301 8.3.2 Identification of strategies and solutions

Identify candidate strategies and solutions by the extent to which they meet the requirement to continue and recover prioritized activities within the identified time frames and agreed capacity, protect those activities, reduce the likelihood of disruption, shorten its duration, limit its impact on products and services, and provide for adequate resources.

Evidence an auditor accepts: Option analysis scoring candidates against each identification factor; Evidence time frame and capacity requirements came from the BIA; Coverage of likelihood reduction options, not recovery options alone
Common gap: Candidates assessed on cost alone at the identification stage, collapsing identification into selection
ISO 22301:2019 on compliance.theartofservice.com

ISO 22301 8.3.3 Selection of strategies and solutions

Select from the identified candidates on the extent to which they meet the required time frames and agreed capacity, fit the amount and type of risk the organization is prepared to take, and stand up on associated costs and benefits.

Evidence an auditor accepts: Selection decision record naming the three selection factors; Statement of the risk the organization is prepared to take that the decision was judged against; Cost and benefit analysis behind the chosen solution
Common gap: Selection made on cost with time frames and risk appetite unexamined
ISO 22301:2019 on compliance.theartofservice.com

ISO 22301 8.4.4 Business continuity plans

Document and maintain business continuity plans that guide teams through response and recovery, collectively containing the actions to continue or recover prioritized activities within predetermined time frames, the means of monitoring the disruption and the response, the pre defined thresholds and process for activating the response, procedures to deliver p...

Evidence an auditor accepts: Plan set with each plan carrying every required element; Activation criteria and thresholds stated in the plan itself; Interdependency and resource sections reconciled to the BIA
Common gap: Plans that cover activation and response but have no stand down, so the organization never formally returns to normal
ISO 22301:2019 on compliance.theartofservice.com

ISO 31000 6.5.2 Selection of risk treatment options

Guidance: choosing treatment options balances the benefits for the objectives against the cost, effort and disadvantages of implementing them. Options are not mutually exclusive and not all fit every situation; they include avoiding the risk by not starting or continuing the activity, taking or increasing the risk to pursue an opportunity, removing the risk ...

Evidence an auditor accepts: Treatment option analysis per risk showing the options considered, their cost and benefit, and the one chosen; Insurance schedule, contracts and other risk-sharing arrangements tied to the risks they transfer; Documented retained and residual risk with the decision maker's acceptance
Common gap: Only mitigation considered; avoiding, taking or sharing never on the table
ISO 31000:2018 on compliance.theartofservice.com

ISO 31000 6.4.2 Risk identification

Guidance: risk identification finds, recognizes and describes the risks that might help or prevent the organization achieving its objectives, and depends on relevant, appropriate and current information. A range of techniques can be used to find the uncertainties that affect objectives, and the following factors and the relationships between them should be c...

Evidence an auditor accepts: Risk register entries with source, event, cause and consequence described; Identification techniques used (workshops, checklists, scenario analysis, indicators) and who took part; Opportunities recorded alongside threats
Common gap: Only threats identified, never opportunities
ISO 31000:2018 on compliance.theartofservice.com

COSO ERM principle 13 Implements Risk Responses

The organization identifies and selects risk responses.

Evidence an auditor accepts: Risk treatment plans; Action owner assignments; Cost-benefit analyses
Common gap: Response chosen without analysis
COSO ERM 2017 on compliance.theartofservice.com

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Paste the schedule and get this classification for every line at once, with the retained and transferred figures, the rate on line, the loss ratio, the findings and the questions for the broker. Six lines free, no account.

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