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Whether from hurricanes or wildfires or deep-freezes, businesses in every sector may be shut down when disaster strikes, including those in the tech industry. According to insurer Aon, the economic loss caused by natural disasters in 2021 was $283 billion – and only 38 percent of that staggering number was covered by insurance [1], so it is important to take steps now – before there is a catastrophe – to review your policy and coverage so that you have the resources to get your tech company back online.

3 Key Areas Where Tech is Different

When disaster strikes, businesses look to their business interruption insurance policy to replace the income lost while their business is suspended. Quantifying lost income is difficult for organizations in any industry, but the unique revenue models, the evolution of cloud computing and remote workforces common to the tech industry can make the task more difficult.

Re-Booting After Disaster


Tech firms need to identify and assess their risks and align their insurance coverage to them. Understanding how a hurricane, fire or other disaster will affect your business allows you to make sure you have the right coverage. If your workforce is largely remote and your infrastructure is in the cloud with adequate redundancy, you may have a relatively lower risk of business interruption. Conversely, if you have physical locations and their operations are closely tied together through an Enterprise Resource Planning (ERP) system, a disaster in one state may affect production in another state. These are just a few of the questions and scenarios our damages and insurance claims professionals discuss with clients during a business interruption risk assessment.

Read More:
Recovering from Disaster – Primer on Business Interruption Insurance Claims

How DHG Can Help with Your Business Interruption Risks

If your tech company is asking these questions, our insurance claims and damages quantification professionals can work with you and your other risk advisors to help you identify and quantify your business interruption risks. Please contact the author or your DHG engagement partner if you have any questions.



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