Last year served as a wake-up call for manufacturers on the fragility of their supply chains. Catastrophes in 2011—including massive floods in Thailand that disrupted electronic- and auto-parts manufacturers—caused record totals of $105 billion of insured losses and $380 billion of total economic damages worldwide, according to Munich Reinsurance America.
Jim Rubel, a New York-based executive vice president for Lockton Inc., characterized supply-chain management as a major priority for manufacturers since the 2011 earthquake and tsunami in Japan.
In addition to contractual indemnity provisions with suppliers, manufacturers can turn to their property insurers for Contingent Business Interruption insurance—which covers losses arising from a supply-chain interruption even when the policyholder did not suffer a property loss.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
