New York — Insurance broker and risk advisor Marsh Inc., and Lexington Insurance Co., a unit of AIG Commercial Insurance, have developed an insurance program that can help companies manage the financial consequences of a disruption to their critical supply chains.
Marsh developed the program, known as Global Supply Secure, in conjunction with Lexington Insurance, which will underwrite the insurance coverage through its offices in the United States, United Kingdom, Canada and Bermuda. The coverage requires a supply chain risk assessment from Marsh's risk consulting practice.
Global Supply Secure is designed to protect companies whose operations rely on critical supplies of goods or raw materials. Under the program, businesses may be able to obtain broad coverage throughout a company's supply chain, including loss of a supplier, stoppage of the supply itself or a related interruption in service. The coverage can apply to supply chain interruptions stemming from a wide range of perils, such as strikes, political risks, the outbreak of a pandemic or delay in supply from a variety of causes.
"As businesses in nearly all industry sectors take advantage of globalization to reduce costs and achieve efficiencies, their supply chains have become the lifeblood of many of their production, manufacturing and distribution activities," says Robert Howe, leader of Marsh's global property practice. "While the economic benefits of such supply networks are clear, the risks have become more acute and a supply chain interruption can have potentially devastating effects on a business. Our new program approaches business interruption on a broad basis to help companies address a wide range of potential disruptions."
Source: Marsh Inc.
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