Supply Chain Risks

An industrial leader’s reliance on their value chain (whether upstream or downstream) is such that any financial loss in the event of disruption would be very severe.

An accidental occurrence suffered by a direct or indirect supplier or by a customer can result in partial or total paralysis for the business, leading to business interruption which could jeopardise the continued existence of the company.

These days, anticipating industrial mishaps in order to avoid them, or at least limit the consequences they would have on the smooth running of your business, is a major issue in an environment where supply chains are becoming ever more complex.

Internal solutions exist for businesses, in particular Business Continuity Plans (BCP) which, way beyond analysing the causes, enable all or some supply chain risks to be reduced.

Apart from the business’s own solutions and internal tools, the advisability of transferring the « supply chain » risk to the insurance market can be considered as a measure to protect the company’s balance sheet.  

Insurance solutions do already exist through coverage under « traditional » insurance policies, especially where « Property Damage » or « Cargo » risks are concerned.

These partial answers, found in policies whose primary purpose is not to cover « supply chain » risks, provide an appropriate solution to a great number of exposures as long as they have been clearly identified beforehand and their scale fits the industrialist’s requirements.

Ad hoc solutions are also available on the insurance market to meet industrialists’ specific expectations in this area.