We have now reached the second half of the year—a time when many organizations review their budgets, operational performance indicators and key risks. However, few ask themselves an equally important question:
Are we prepared for the types of claims that are having the greatest impact on businesses today?
Based on our experience supporting organizations in the management of major industrial claims, we have observed that the most significant change is not necessarily the emergence of new risks, but rather the increasing frequency, complexity and consequences of certain types of events.
Non-Physical Business Interruptions
Business interruptions caused by power failures, technology outages, the unavailability of critical suppliers, logistics disruptions or failures in essential services are becoming increasingly common.
Even when there is little or no physical damage, the impact on production, customer commitments and financial performance can be substantial.
Greater Supply Chain Dependency
Globalization and specialization have significantly increased companies’ dependence on strategic suppliers.
As a result, an incident affecting a third party can bring an entire operation to a standstill, even when the company’s own facilities have suffered no damage.
For this reason, identifying critical suppliers and reviewing contingency plans remains a key priority for Risk Management teams.
Breakdown of Critical Equipment
Many industrial operations rely on highly specialized assets where a single equipment failure can halt production for weeks.
In these situations, the greatest financial impact often comes not from repairing the equipment itself, but from the resulting business interruption and loss of profits.
Increasing Documentation Requirements
Claims management processes are becoming increasingly demanding.
The availability of maintenance records, operational traceability, internal controls and technical documentation can make the difference between a well-supported claim and a complex negotiation.
Preparation begins long before a loss occurs.
Technology and Artificial Intelligence
New technologies are accelerating data analysis and document management.
At the same time, they are raising expectations for every stakeholder involved in the claims process.
Organizations need stronger processes, better structured information and a clear strategy to manage claims effectively in an increasingly digital environment.
Review of Sums Insured
In today’s economic environment, organizations should also review their insured values.
Inflation driven by factors such as U.S. tariffs, the Russia–Ukraine war and ongoing conflicts in the Middle East has increased the replacement cost of many industrial assets.
For this reason, it is essential to review the sums insured for both Property Damage (PD) and Business Interruption (BI) coverage to avoid underinsurance that could adversely affect claim settlements following a loss.
What Should Risk Managers Review During the Second Half of the Year?
Beyond policy renewals, this is an excellent opportunity to review:
✔ Emerging operational risks.
✔ Critical supplier dependencies.
✔ Business continuity plans.
✔ Internal claims response protocols.
✔ The quality and availability of documentation required to support future claims.
✔ The adequacy of Property Damage (PD) and Business Interruption (BI) sums insured, considering increasing replacement costs driven by inflation, U.S. tariffs and current geopolitical conflicts.
An Opportunity to Strengthen Preparedness
Effective claims management begins long before a loss occurs.
Reviewing processes, validating documentation and strengthening coordination between Risk Management, Operations, Finance and Insurance functions can significantly reduce the impact of a major event.
At Vantevo, we support organizations in the strategic management of Risk, Insurance and Claims, helping them achieve a fair, agile and amicable claims resolution while strengthening their resilience and recovery capabilities following complex losses.