Businesses face a range of threats that can interrupt operations—from supply‑chain breakdowns and automation failures to cyberattacks and severe weather that damage facilities, limit access, and disrupt continuity. Cyber risk is increasingly entangled with other vulnerabilities, and shifting climate patterns are producing more frequent and intense weather events.
In many industries, a shutdown can extend beyond the affected company and disrupt suppliers, partners, and customers across the supply chain. Shipments may be delayed, raw materials may need to be stockpiled, and retail shelves can sit empty. The duration and impact of an outage depend largely on how well the business prepares and manages the shutdown. Because supply chains are globally interconnected, regional resilience alone is no longer adequate. Interruption planning requires businesses to take a global perspective.
Supply-Chain Interruptions
The Marsh McLennan Agency Risk Report found that in 2024, 80% of organizations experienced supplychain disruptions, with most reporting between one and ten incidents over a 12-month period—a 38% increase from the prior year.
Automation and Artificial Intelligence Failures
Failed software updates, corrupted firmware, and glitches in even the most advanced systems—including AI-driven platforms—can trigger downtime. As operations become more dependent on complex, interconnected systems, a single malfunction can halt production across an enterprise.
Cyberattacks
Cyber Management Alliance reported numerous cyberattacks in June 2025 alone, affecting governments, healthcare providers, retailers, insurers, software vendors, food wholesalers, an airline, and more. IBM’s Cost of a Data Breach Report 2025 estimates the global average cost of a breach at $4.4 million, with 258 days on average to identify and contain an incident.
Weather-Related Disruptions
Severe weather is more frequent and can damage buildings, interrupt supply chains, endanger employees, and cause power outages. With more frequent and intense weather events, unplanned shutdowns can sometimes last months. The TWI Institute estimates that unplanned downtime can cost an average company $260,000 per hour.
Insurance is only part of what you need for protection
Insurance + Business Continuity Plan
Insurance can cover many of the financial consequences of a business interruption, but it won’t prevent the interruption or eliminate all associated risks. Insurance helps you recover financially after a loss; a Business Continuity Plan helps you keep operating (or restore operations quickly) when a disruption happens
What is a Business Continuity Plan?
A Business Continuity Plan (BCP) is a documented strategy that keeps an organization running during and after a disruption. It identifies critical functions, defines how those functions will continue (or be restored), assigns roles and responsibilities, specifies communication protocols, and outlines recovery actions for IT, facilities, supply chains, people, and other core operations.
