Tim Gallagher
Senior Vice President, Business Insurance Market Leader
Every business faces risks that can cause disruptions, including supply chain breakdowns, automation glitches, cyber-attacks, and weather-related problems that can affect operations, locations, access, and more. The COVID-19 pandemic showed how unexpected shutdowns can happen for many reasons. Cyber threats have become more complex and interconnected over time. And weather patterns are changing, often becoming more severe and frequent.
Depending on your industry, a shutdown can impact more than just your business. It can affect other parts of a supply chain, just as other shutdowns could impact you. Product distribution might be delayed; raw materials may need to be stockpiled; retail shelves could be empty. Unfortunately, regional resilience isn’t enough anymore. Planning for interruptions requires a global view.
How long your business is down and how serious the consequences are depends a lot on how well you’ve prepared and how you manage a shutdown.
Your business could be vulnerable to multiple shutdown causes.
Supply chain interruptions
According to the Marsh McLennan Agency Risk Report, 80% of organizations in 2024 reported disruptions in their supply chains, with most experiencing between one and 10 disruptions over 12 months. That’s a 38% increase from the previous year.
Automation and artificial intelligence
A software update that doesn’t work. Corrupted firmware. Even advanced systems, including those with AI, can have glitches that cause downtime. Many businesses rely on complex, interconnected systems where one failure can stop everything.
Cyber attacks
According to Cyber Management Alliance, in June 2025 alone, there were multiple cyber-attacks targeting governments, healthcare providers, online retailers, insurance companies, and more.
IBM’s Cost of a Data Breach Report 2025 found the average cost of a cyber-attack worldwide was $4.4 million, and it takes about 258 days to identify and contain the breach.
Weather-related problems
Damage to buildings. Supply chain delays. Power outages. Employee safety concerns. As weather patterns shift and become more unpredictable, businesses need to prepare for disruptions. Whether you see climate change as a concern or not, the fact is that weather is more severe and frequent. Fires, floods, tornadoes, high winds, hail—these can shut down operations for months. According to the TWI Institute, unplanned downtime like this can cost an average company $260,000 per hour.
Insurance is just one part of your protection plan.
Insurance can help cover many costs from business interruptions, but it’s only one tool. You also need to:
- Manage your supply chain for resilience, including diversifying suppliers and managing inventory levels.
- Proactively identify risks and find ways to manage them effectively.
- Create a business continuity plan and practice it so it works when needed.
Create a business continuity plan—and practice it.
A good business continuity plan can help reduce downtime, protect your assets, maintain your reputation, stay compliant, and keep your operations resilient.
What makes a practical plan?
- Conduct a thorough risk assessment, including impacts on your business.
- Identify potential threats.
- Develop response and recovery strategies, including IT plans.
- Set up communication plans.
- Manage supply chain disruptions.
- Ensure employee safety during a crisis.
In short, solve problems before they happen. Be prepared. And practice your plan so everyone knows their roles and responsibilities. Many companies reach a point where they need to activate their plan but aren’t sure how to make it work.
Sound overwhelming? Not if you work with the right risk management partner.
Talk with Marsh McLennan Agency.
Our specialists understand your industry and the risks you face, especially during disruptions. We have the tools and resources to help you identify risks, find the right coverage, and prepare for whatever might happen next.
Many businesses don’t have the right coverage for short-term or long-term shutdowns. It’s not a one-size-fits-all solution. Working with the right broker can help ensure your coverage matches your needs and protects against your specific risks.
To learn more, reach out to your local MMA representative for help.
