This is the risk that the firm or organization is impacted or suffers loss as result of a physical event affecting a part (or whole) of the organization’s infrastructure or operations. The event can be an act of nature or a manmade event (either deliberate or accidental). The impact of the physical event can be loss of life, loss of property and/or temporary or permanent disruption to business operations for a period of time.


Losses arising in the category may be insurable events or uninsurable events.