Learn about actual and potential costs
How much should I pay for Business Interruption Insurance?
What is the average price of Business Interruption Insurance?
This procurement report includes pricing information to help you purchase Business Interruption Insurance. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.
Has the price of Business Interruption Insurance been rising or falling?
Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.
I’m not ready to purchase Business Interruption Insurance yet. Will I pay more if I wait too long?
We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.
What other costs are associated with purchasing Business Interruption Insurance?
Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Business Interruption Insurance with a reduced risk of unexpected costs.
See how we display average pricing information, trends and market data.
Find the vendor to meet your needs
Where can I purchase ?
Among the estimated 125 providers of business interruption insurance, the top four players account for less than 30.0% of total market revenue, signaling a low degree of concentration. Low concentration stems from the high degree of homogeneity between business interruption policies, whereby insurers largely offer similar levels of coverage. Therefore,... Subscribe to learn more.
Questions to ask potential suppliers
How can I gain leverage during negotiations?
How does the insurance carrier rank on A.M. Best or Standard & Poor's credit ratings?
What are the insurance carrier's expense ratio, operating ratio, loss ratio and combined ratio?
What methodology does the insurance carrier use to calculate the amount needed for the claims reserve?
Has the insurance carrier ever had to payout more than what they had in their reserve?
Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle changes in demand?
Amidst widespread health concerns, what contingency plans are in place to mitigate risk to your clients and employees?
What percentage of your revenue is generated from business interruption insurance?
What percentage of your business deals with my industry?
What do you consider to be common perils in my industry?
What is the standard coverage for my industry, and why?
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Key elements for every RFP
What should my RFP include?
Buyers should request a detailed breakdown of insurers’ premium rates.
Buyers should outline any other costs for which insurers are responsible (e.g. mailing documents).
Buyers should evaluate insurers based on their costs.
Buyers should evaluate insurers' ability to meet their coverage needs.
Buyers should evaluate insurers' market experience and financial performances.
For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.
Buyers should include the date when proposals are due and any other relevant dates (e.g. final interviews) prior to the contract award.
Buyers should include the date the contract begins and ends, as well as any options for contract renewal.
Evaluate major factors to mitigate risk
How risky is the supply chain?
Supply chain risk for business interruption insurance is moderate. Providers of these insurance services rely on upstream suppliers like office supply wholesalers, computer equipment wholesalers, custodial bank and brokerage firms, reinsurers and IT consulting firms. Although brokerage firms and IT consultants are subject to intense competition, professional services sourced from... Subscribe to learn more.