Zurich combats supply chain risks

by Richard Kilner

Story link: Zurich combats supply chain risks

Zurich Global Corporate has launched a new product specifically designed to combat the threat of supply chain failures that might adversely affect a firm’s financial situation.

The Supply Chain Insurance proposition’s initial launch phase will focus upon companies with HQs in Europe, and offers a unique product within the European marketplace.

The All Risks policy was designed to help support businesses concerned that orthodox property based Business Interruption cover was inadequate for handling supply chains risks.

In addition, research suggests that the annual cost of supply chain difficulties can be as much as €30m, and averages around €6.3m.

As well as the All Risks policy, customers can benefit from coverage of supply chain risk beyond their control, comprehensive assessment of supply chain risks and identification of suitable countermeasures and a claims settlement agreed when the policy is underwritten.

The launch follows Zurich’s Risk Insight report, in which it is estimated the number of companies to be hit by supply chain risks has doubled over the last five years, and during that time the number of countries considered vulnerable to supply chains being broken have risen by a third.