Insurers suffered sizable Contingent Business Interruption (CBI) losses last year, as catastrophes such as the Japan earthquake and Thai flooding wreaked havoc on supply chains worldwide. CBI losses, in fact, likely accounted for a substantial portion of the massive cat claims in 2011.
“Even though we are unaware of any industry-wide tabulation of insurance payouts due to either Business Interruption or Contingent Business Interruption claims, it is safe to say they likely totaled in the billions of dollars because of the extraordinary number of natural disasters worldwide last year,” notes a spokesman for the New York-based Insurance Information Institute.
Yet despite these massive payouts, insurance buyers seeking extensive CBI coverage can still get it. But they’d better be ready to pay more—and to provide more detailed information than ever on their supply network’s potential exposures.
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