Supply chain disruption has moved from theoretical risk to documented loss -- and the insurance market is responding.
The pandemic-era supply chain events and subsequent logistics disruptions demonstrated how deeply interconnected commercial operations are with global supplier networks. A factory shutdown on one continent can halt production on another within weeks, generating business interruption losses with no direct physical damage trigger.
Traditional property-based BI coverage requires physical damage to the insured location. Contingent BI and supply chain-specific products are designed to respond to the indirect, multi-tier dependency losses that standard BI leaves uncovered.
Underwriting this exposure requires visibility into policyholder supply chain structure -- tier-1, tier-2, and tier-3 dependencies -- a level of data collection that is maturing as supply chain mapping tools become more accessible.
#SupplyChainRisk #BusinessInterruption #CommercialInsurance #ContingentBI #PandCInsurance
Prior 