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Custom Networks, Inc.


Today’s supply chains are on a global level, meaning more is at stake if there’s a power disruption.

Downtime and business continuity losses

It's no surprise that downtime causes businesses to lose income every year. A recent repot from Allianz Global Corporate & Specialty noted that power disruptions are major causes of business continuity insurance losses. These interruptions can halt businesses in their tracks, leading to thousands of dollars lost per minute if they're not prepared. 

The global study included nearly 2,000 claims from 68 different countries, from the years 2010 through 2014. Blackouts ranked among the top causes of these losses. The average large business claim has reached a shocking $2.4 million. 

Business interruption insurance losses on the rise
Today's supply chains are global in scope, and interconnected. A flood or storm creating a power outage can affect more than just local companies, but partners and customers all over the world. The Allianz report noted: "Business continuity planning should not only be part of a company's own supply chain risk management program, but should also be extended to all of its critical suppliers."

While the interconnected nature of modern supply chains provides increased efficiency and lower costs, it also means an interruption of service in one location can send shock waves on a global level. 

Business interruptions affect every industry
The Allianz study included companies from every major industry. Among the sectors most commonly affected by disruptions:

  • Property
  • Energy
  • Engineering
  • Entertainment
  • Mid-corporate

The energy sector saw the largest business insurance claims in terms of dollars, with property and engineering following. 

"Interruptions can lead to thousands of dollars lost per minute."

Causes of business interruptions
Out of all the business interruptions that they studied, the Allianz team found that only 13 percent came from natural hazards such as storms. The majority of these disruptions (88 percent) were caused by technical issues or human errors. That means it's critical to take care of your equipment, train your IT department and ensure that your data centers have reliable power. 

Preparation is key
Disaster can strike in a variety of ways. In addition to a typical blackout, Allianz found that the top 10 disruptions include:

  • Fire/explosion
  • Storm
  • Flood
  • Collapsing structure
  • Faulty design
  • Human error

These incidents are all difficult to predict, but they can have serious impacts on your company's entire supply chain. That's why it's important to take the proper measures beforehand to ensure that your business can stay online even after a catastrophic event.

At Custom Networks, we sell APC modular and scalable systems to ensure uninterruptible power.  Contact Custom Networks to see how a sophisticated, efficient UPS system can boost your power protection. 

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