{"id":4114,"date":"2019-07-17T12:05:45","date_gmt":"2019-07-17T11:05:45","guid":{"rendered":"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/?p=4114"},"modified":"2019-07-17T15:49:22","modified_gmt":"2019-07-17T14:49:22","slug":"supply-chain-insurance-risk-issues","status":"publish","type":"post","link":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/blog\/supply-chain-insurance-risk-issues\/","title":{"rendered":"Do You Have Suitable Supply Chain Insurance For 2019 Risks"},"content":{"rendered":"\n

Supply chain insurance is often used to cover against instances of supply chain risk, worrying however, many organisations are lacking the appropriate and suitable cover to deal with the greatest common supply chain issues of 2019. We go into more detail about the importance of cover and the greatest risk factors currently present.<\/p>\n\n\n\n

While many organisations combat the risk of underinsurance by purchasing robust cover to protect against disasters that could take place within their own establishment (eg a fire or flood), underinsurance is a risk that runs beyond your company\u2019s walls\u2014your supply chain needs cover too. <\/p>\n\n\n\n

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Indeed, it\u2019s common for various organisations\u2014such as manufacturing or transport businesses<\/a><\/strong>\u2014to have a long list of suppliers. And while you might think a supply chain concern is automatically covered in your business interruption policy, think again. Without robust insurance, all it takes is a single supplier\u2019s setback to collapse the remainder of your chain and cause serious financial downfall. Especially in the age of Brexit, this possibility is as acute as ever.<\/p>\n\n\n\n

Consider the following guidance to ensure your organisation possesses the appropriate cover to protect against supply chain risks and challenges:<\/p>\n\n\n\n

Reduce your Supply Chain Risk<\/h2>\n\n\n\n

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Name Every Supplier<\/h3>\n\n\n\n

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Many organisations make the mistake of only naming tier-one suppliers in their business interruption policy, providing no insurance protection in the event of a catastrophe that occurs further down the chain. Be sure to name your entire supply chain within your policy to avoid any underinsurance issues.<\/p>\n\n\n\n

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Include Non-physical Damages<\/h3>\n\n\n\n

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Although business interruption insurance typically offers cover for physical damages\u2014such as property destroyed by a natural disaster\u2014it\u2019s crucial to ensure your policy provides protection for non-physical damages throughout your supply chain as well. For example, while a supplier suffering from a major cyber-attack<\/a><\/strong> might not cause physical damages, it could still significantly disrupt business operations.<\/p>\n\n\n\n

Don’t Forget About Delivery Disasters<\/h3>\n\n\n\n

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Another example of non-physical damage that could still wreak havoc within your organisation is supplier delivery problems. Make sure your policy extends to common supply chain disruptions such as loss of goods in transit, or storage and delivery delays.<\/p>\n\n\n\n

\"Forklift<\/figure>\n\n\n\n

Update Your Policy<\/h3>\n\n\n\n

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As your organisation\u2019s supply chain evolves, so does your risk. With this in mind, failure to update your policy as these supply chain changes occur could result in inadequate cover in the event of a claim. For instance, if your establishment is stockpiling to prepare for Brexit, it\u2019s vital that you inform your broker to increase your sums insured. <\/p>\n\n\n\n

Or get in touch with an <\/em>expert insurance broker<\/em><\/strong><\/a> at NC Insurance and we’ll recommend the appropriate limits for you. <\/em><\/p>
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Revealed: The Top 5 Supply Chain Risks for 2019<\/h2>\n\n\n\n

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Supply chain issues? Let us know how we can help!<\/h4>\n\n\n\n

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At the end of the day, you need robust insurance cover to keep you, your business and your staff protected. We’ve helped a huge range of businesses by providing specialist policy wordings & industry-specific cover for over three quarters of a century.<\/p>\n\n\n\n

Find out how we can help you mitigate supply chain risk<\/strong><\/a>, call us on 0191 482 1219<\/strong><\/a> or visit our website<\/a><\/strong> to find out more about what we do for our clients. <\/p>\n\n\n\n

Can’t get enough? Check out another post:<\/h4>\n\n\n\n

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