With natural disasters happening around the world, the supply chain for your business may run into problems. Business supply insurance covers those increasing exposures. Some things are out of your control but protecting your business’ financial assets is something you can control.
What It Covers
Business supply insurance often covers both non-physical and physical damages. Non-physical damages could result from events such as political risks, strikes and pandemics. Physical damages often result natural disasters such as earthquakes, volcanic eruptions and fire. Depending on the insurance policy, the insurance may cover many of the following:
- Use either an actual sustained loss or agreed upon value basis for claims
- Business interruption or delays due to supply chain problems
- Multiple suppliers and supplies based on the number of units or gross income
Why You Need It
Even those businesses not directly impacted by an event may still experience delays and disruptions. Any business purchasing supplies from manufacturers operating overseas should consider obtaining a policy. Businesses in industries such as automotive, manufacturing, technology and pharmaceutical may have an increased risk of supply chain interruption or delays.
Protect your business with business supply insurance and lower your risks. An agent or broker can help you analyze your risks and design a program to cover your specific risks. A policy can help prevent unnecessary financial loss to your business.