Jennifer Chenault
Vice President, Principal, Business Insurance
Whether it’s a natural disaster, a supply chain breakdown, or a sudden crisis, unexpected disruptions can threaten a business’s short- and long-term financial health.
As companies navigate an increasingly complex risk landscape in 2025, the importance of business interruption insurance (BII) continues to grow. BII provides financial protection to businesses in the event of a disruption that affects their ability to operate.
BII: shielding business from disruptions & disasters
When extreme weather strikes or supply chains falter, businesses don’t just lose revenue—they risk their long-term stability. Experts predict both could be on the rise in 2025 and beyond.
The Environmental Protection Agency links rising global temperatures to widespread changes in weather patterns, resulting in more frequent heat waves and severe storms.
With shifting climate patterns, business owners must closely monitor natural disaster trends, as one in four companies won’t reopen after experiencing one, according to the Small Business Administration.
Financial health analytics firm RapidRatings found that seven in 10 supply chain professionals expect risks to escalate in 2025 due to geopolitical instability, economic turbulence, and tariffs that threaten global commerce.
Without a financial safety net, even a temporary closure can lead to lasting setbacks, from lost customers to mounting operational costs.
By mitigating risks from these external threats, BII can help businesses maintain continuity and recover more quickly. This coverage allows companies to meet ongoing expenses like rent, utilities, and payroll, providing a buffer against financial strain.
In addition to lost income, BII can cover extra expenses, like renting temporary space or equipment.
Building resilience through continuity planning & compliance
Beyond offering financial support during a crisis, BII encourages companies to adopt proactive risk management strategies.
Because insurers often require businesses to assess potential vulnerabilities and implement comprehensive business continuity plans, owners can not only secure coverage but also strengthen the overall resilience of their business.
Additionally, maintaining compliance with evolving regulatory requirements is essential, as failure to do so can lead to costly fines and legal exposure, further exacerbating financial risks in the wake of disruption.
Companies that evaluate their exposure to disruptions can implement preventive measures, such as supplier diversification. However, a study from the Stanford Institute for Economic Policy Research found that simply having multiple suppliers isn’t sufficient if they buy materials from the same place.
For example, a manufacturer that produces electronic devices might source microchips from different suppliers. However, if those suppliers all rely on the same factory, a temporary shutdown will delay the manufacturer’s ability to fulfill orders, risking lost sales and customer trust.
Understanding how suppliers source materials provide deeper insight into potential weak points within the supply chain. This enables a company to create more proactive strategies that minimize disruptions and ensure smoother operations.
Long-term value: why financial partners support firms with comprehensive coverage
As a business recovers with the help of BII, the protocols it implements can ensure a quicker resumption of operations. This commitment to operational security enhances a company’s long-term value in the eyes of investors and lenders.
According to Indeed, financial partners value companies that effectively mitigate risks. This could lead to additional funding on more favorable terms for a business. Additionally, this practice can reduce a company’s legal liability, help it achieve scalability, and build trust with consumers and employees.
Companies can tailor BII policies to fit their industry-specific needs and business models. The cost of BII depends on several factors, including the company’s industry, number of employees, amount of coverage and prior claims.
The Insurance Information Institute has found that a company’s location can influence coverage costs, too—particularly if it’s in an area vulnerable to natural disasters.
Futureproofing through BII
Rather than viewing it as an expense, forward-thinking businesses should see BII as a long-term investment in their resilience.
As the business landscape evolves, uncertainty remains constant. BII provides a layer of financial security, allowing companies to navigate unexpected challenges with peace of mind.
Marsh McLennan Agency’s expert team helps companies of all shapes and sizes bolster their resilience with business interruption insurance. Connect with a Marsh McLennan Agency representative to explore how we can help your business.
