GrECo expert warns of high costs from business interruption

Miha Javornik, head of insurance engineering and risk management at GrECo, highlights that the costs of business interruption due to fires, equipment failure, or other incidents can significantly exceed the direct costs of repairing damaged property. Beyond physical damage, companies face lost revenue and the risk of customers seeking alternative suppliers during downtime.

As companies invest in energy projects like solar power plants and battery storage to ensure reliable supply, new risks emerge. Javornik warns that unverified, low-cost technologies can increase fire exposure and prove more expensive in the long term. Additionally, the shift toward digital management introduces cybersecurity vulnerabilities, with human error remaining a primary risk.

The green transition, accelerated electrification, and the growth of data centers are increasing pressure on energy production and distribution. Data centers accounted for 1% of global electricity consumption in 2024, with projections suggesting this could rise to 3% or more by 2030.