SIR – Businesses are dependent on the service industries and the public utilities, on transport and a plethora of other variables. With this in mind, most companies will have a risk management programme in place, designed to control not only the 'human factor' of the business – thereby reducing costly errors – but also for implementing contingency plans should the unexpected occur.

After all, no matter how well the business is managed, or how thorough the risk management programme, certain events beyond the control of the company's executives cannot be foreseen or planned for. Unforeseen events in society and politics or acts of terrorism, for example, could have a negative influence on the profitability of a business.

Public perception and attitude towards a business or the city or country wherein its located can be very important to its commercial success or failure, and any dramatic change in attitude may be potentially disastrous. However unlikely an event, it's always wise for the Board of Directors to ask: "What if?"...

What companies – and their security managers – really need is contingent business interruption insurance. A policy that offers cover against a variety of fortuitous events over which an Assured has no control, and which do not cause physical damage to the Assured's property or premises. It's a type of cover that's available to businesses on a stand-alone basis against occurrences which affect the immediate vicinity, the surrounding area or a much wider area, but which doesn't impact on the Assured's property.

With a good policy, insured events forming the basis of standard business interruption cover include fire and explosion, strikes, terrorism, repressive and restrictive acts by host Governments, border closure, the 'perils of nature' (such as flooding), natural catastrophes and transport disasters.

Contingent business interruption insurance has been developed to complement material damage business interruption policies rather than duplicate that cover.

We have developed our own policy in conjunction with certain Lloyd's of London Underwriters. Any SMT readers who'd like to discuss contingency cover further can contact us directly (telephone: 020 7744 7784).