The world has seen the seismic impact of supply chain disruptions over the past few years—brought on by COVID-19, the Russia-Ukraine war, Brexit, inflation and natural catastrophes such as last year’s winter freeze in Texas.
Executive SummaryThe world has reeled over the past few years from an unprecedented series of global events. The result was massive global supply chain disruptions, which insureds, their insurers and technology companies are working to resolve and mitigate. Insurance is available but one of the best solutions is to prevent the risk from happening in the first place.
While supply chain risks are insurable, many products do not cover non-damage business interruption, and companies could find they aren’t covered for shipping delays that don’t involve physical damage. As a result, many risk experts believe that if insurance isn’t available, then additional holistic solutions need to be found—to prevent losses from occurring in the first place.
Doing nothing is not an option.
A recent survey conducted by the UK risk management association, AIRMIC, found that “supply chain failure” was tied at No. 2 in the top 10 list of significant threats facing businesses (along with “geopolitical risk” and “climate and net zero transition”). The No. 1 threat was “cyber incident, including ransomware attack.”