Trade Disruption Insurance ABC’s
Retail goods in a transport trailer held up at a U.S. border crossing? Imports from China fail to pass a customs inspection? With many Canadian businesses operating as part of the global economy, unexpected political strife can cause major damage to your bottom line.
The International Risk Management Institute (IRMI) defines trade disruption coverage as “Political risk insurance that covers loss of gross earnings and extra expenses caused by a delay or non-arrival of supplies or stocks arising from foreign government actions or inaction. Such losses can arise from embargoes, expropriation, nationalization, interference with transportation, and similar actions.”1
Trade disruption can and will happen when you least expect it. Even a few days delay in the delivery of products to your Canadian business location can quickly snowball into unmet customer expectations and costly delays. Whether it is obvious or not, one or more aspects of your business is likely tied into a global supply chain–and, as such–is vulnerable to potential trade disruption.
Trade Disruption Insurance: A Forward-Thinking Option
Similar to business interruption and cyber coverage, trade disruption insurance can help your business recover from an incident and keep pace with your customers’ needs for timely and reliable product deliveries.
Trade disruption insurance can support businesses operating in a wide range of industries such as:
- Agriculture, mining and metals, forestry, oil and gas
- Banks and other financial institutions
- Construction, power and telecommunications
- Distributors, retailers and wholesalers
- Energy, mining and more…
If your organization is new to international operations, trade disruption insurance can provide an additional layer of security as you enter new markets.
4 Ways Trade Disruption Insurance Keeps Your Business Moving
- Customize your coverage for a unique peril or geographical area
- Identify and assess risks to your international supply chain
- Access current information on developing global political situations
- Adds to existing cargo physical damage, political risk, war and/or terrorism coverage
Sources: 1 IRMI.com