Business Interruption Claims Rose Sharply in Value
Higher costs and supply chain fragility mean your coverage may be inadequate for modern operational risks.
Updated on Oct. 8, 2026 in Remote Work
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Allianz Commercial reported that average business interruption claims have surpassed average property damage claims by 70%. The report found that average claim values increased by more than 30% annually over the last two years.
Why it matters
Operators face higher recovery costs due to concentrated production, inflation, and technology dependencies that cause cascading supply chain failures. This trend reflects a shift where the cost to stay in business during a disruption now significantly outpaces the cost of physical assets.
The study analyzed 7,888 claims totaling €6.74 billion, with fire and explosion events driving over 40% of the total value. While 48,000 cloud and software service outages were tracked in 2025, it remains unclear how many of these incidents specifically triggered formal business interruption filings.
The players
Allianz Commercial
A global provider of corporate insurance and risk management services that tracks international loss trends.
The details
Concentrated production and fragile supply chains mean that single-site incidents now cause wider operational cascades. Many businesses suffer from underinsurance because inflation has pushed the value of potential losses beyond existing policy limits. Non-natural catastrophe activity, such as technology outages and operational fires, currently accounts for 74% of all claims by frequency.
Timeline
Claims were analyzed for the period from January 1, 2021 to December 31, 2025.
More than 48,000 cloud and software outages were recorded throughout 2025.
Hurricane Helene prompted business interruption claims in September 2024.
Allianz Commercial released these report findings on October 8, 2026.
Market Landscape
This development follows a pattern of increasing reliance on centralized production and digital platforms. The report underscores the financial consequences of the 2025 surge in global cloud and software service outages by documenting how digital failures now drive massive, unbudgeted business interruption losses.
Owners should review current business interruption coverage limits to ensure they account for inflationary increases in operational costs. Consult with a qualified insurance broker to verify that your policy adequately covers the cost of cascading failures in your specific supply chain.
The takeaway
The gap between physical property damage and operational downtime is widening, requiring a more proactive approach to risk assessment. Track the total cost of outages in your own operations to determine if your current insurance thresholds remain viable under current market conditions.
Further reading
For more on how shifts in work and infrastructure affect your overhead, see Remote Work.
Live Poll
Do you feel your workplace has an effective plan for managing unexpected supply chain disruptions?
