RUEN
Home/Materials/BCM and insurance
Risk management

Business continuity and insurance: what to choose and how to combine

"We are insured, so we are protected" is a common misconception. We break down what business interruption insurance covers, what it does not, and why it is combined with BCM.

Updated: June 28, 2026 · Author: Evgeny Telenkov · ≈ 6 min read

Insurance and continuity are different tools

Insurance compensates part of the financial losses after an event. Business continuity (BCM) reduces the downtime itself and helps you recover faster. They are not a replacement for each other but two layers of protection.

What insurance usually does not cover: loss of customers and market share, reputational damage, missed opportunities. And it is precisely these that often hit harder than direct losses.

Why they are used together

  • BCM shortens the duration of downtime — and therefore the size of the loss itself.
  • A mature continuity system and quantified risks help in negotiations with the insurer and can affect terms.
  • Insurance covers the residual financial risk that continuity measures cannot eliminate.

First we assess the risk (BIA) and reduce downtime with a plan (BCP), then we insure what remains.

FAQ

If the business is insured, do we need BCM?

Yes. Insurance compensates part of the direct losses after an event, but it does not shorten downtime or bring back lost customers. BCM reduces the damage itself, so they are used together.

Can BCM affect insurance terms?

A mature continuity system and quantified risks are an argument in negotiations with the insurer and can have a positive effect on terms.

From the risk register to management decisions

Check whether your risks reach the people who decide. The dashboard shows the state on one screen, the turnkey engagement makes it work.

Take the free assessment → Continuity dashboard → Continuity turnkey →
Evgeny Telenkov
Evgeny Telenkov
Director, business continuity practice · PhD in Economics · Academic Director & Chief Examiner
Risk Manager of the Year in Russia 2020 (RusRisk). Built business continuity from scratch at Nornickel, more than 20 plans; led risk functions at Beeline, Rosneft and EY. Chief risk officer of a 20 billion dollar petrochemical megaproject. Deputy chair of Rosstandart technical committee 010 "Risk management", co-author of six national standards. Author of the ERGP and SAFE programmes.
Read also
7 days of downtime: a cyberattack lesson →
A real ransomware case at a major insurer: 7 days of downtime, website and app offline. Which BCM mechanisms w
BCM, BCP, DRP — the difference →
How BCM, BCP, DRP and risk management differ in plain language. A clear levels diagram, comparison table and e
5-minute assessment →
Your resilience level, three main risks and first steps. Free.