The Main Causes of Business Interruption Claims

Globally, fire and explosion accounted for 59% of 1,807 Business Interruption claims, according to data analyzed over a five-year period by Allianz Global Corporate & Specialty (“AGCS”).

In the United States the major causes of losses for the period 2010 – 2014 were;

         Fire & Explosion 50%

         Storm 17%

         Cast Loss (Entertainment Industry) 9%

         Other 24%.[1]



With the average of all claims being just under $500,000[2].

This research highlighted that the majority (88 per cent) of business insurance claims originate from technical or human factors, not natural catastrophes, although losses due to water from all its sources is still a major cause of business interruption losses.

Finally, the research highlighted increased interconnectivities and interdependencies between companies, as well as lean production processes, have contributed to both the rise in business interruption claims and new risks to business.

While this research concentrated on large businesses, small to medium enterprises have the same exposures often without the financial resources to weather the disruption.


[1] Allianz Global Corporate & Specialty, 2016, Global Claims Review: Business Interruption in Focus – global trends and developments in business interruption claims, p.17.

[2] Ibid