Contingent Business Interruption Insurance has been developed by Strike Risks Management Ltd. in conjunction with certain Lloyd’s Underwriters and offers cover against a variety of fortuitous unforeseen events over which an Assured has no control and which do not cause physical damage to the Assured’s property or premises.

In other words, an occurrence can be insured which affects the immediate vicinity, the surrounding area or a much wider area, without causing physical damage to an Assured’s property, but which has a negative effect on the Assured’s business. Contingent Business Interruption Insurance is available on a ‘standalone’ basis.

All businesses are dependent on the service industries and the public utilities, on other businesses for the supply of raw materials, on the transport and the delivery of the finished product to the customer and the ability of the customer to take deliveries. Most companies will have a risk management programme in place designed to control not only the ‘human factor’ of the business, thereby reducing costly errors, but also to implement contingency plans should the unexpected occur.

No matter how well the business is managed, or how thorough the risk management programme, certain events beyond the control of the company’s executives cannot be foreseen or planned for. Unforeseen events in society and politics, changes in climatic conditions or acts of terrorism could all have a negative influence on the profitability of a business. Public perception and attitude towards a business or the city or country where it is located can be important to its success or failure and any dramatic change in attitude could be potentially disastrous.

However unlikely the event, it is wise for a company to ask “what if?” What if there are strikes, riots, civil commotions or a prolonged terrorist campaign? What if nature wields its formidable might? What if there is an outbreak of disease or an epidemic? What if there is pollution and contamination? All of these events may seem unlikely, but history has shown that they do occur.