The Buncefield oil explosion in Hemel Hempstead has illustrated the need for robust risk management procedures, warned risk management firm Marsh.
The company said the oil depot fire had highlighted many business continuity issues not the least being the business interruption and loss of stock and buildings.
In a December circular produced by Marsh, the company stated that the event demonstrated the importance of testing the effectiveness of business continuity plans, creating links with a network of contractors and outsourcing the claims management process.
It added, “Many ramifications of the Buncefield disaster are still unfolding – for instance it remains unclear who, if anyone, will be held liable for damages. However, what is clear is that some businesses have been able to recover quicker than others due to their preparedness for disasters through robust business continuity planning.”
Marsh also stressed the importance of business interruption (BI) insurance, according to its newsletter some companies nearest to the explosion may not be able to recuperate losses because they did have the appropriate cover.
