Supply Chain Disruption - Insurance and Risk Management

1. Michael Burg, CPCU
Account Executive
920.380.2254
michael_burg@ajg.com
Risk and Insurance
Relevant information for Manufacturers
Supply Chain Risk
The earthquake and resulting tsunami in Japan is causing severe supply chain
issues throughout the globe, and unprepared businesses are struggling with the
consequences.
Manufacturers are faced with increasingly significant risk associated with supply
chain disruptions. The increased risk is driven by a number of factors including, but
not limited to:
 Lean Manufacturing/Tight Inventories
 Global Supplier Networks
 Supplier Consolidation
We work with our clients to develop a multi-faceted approach to supply chain risk.
Our approach includes the following:
Risk Assessment
We have access to a number of Risk Assessment tools that assist our clients in
evaluating their exposure to a supply chain disruption. This process includes
mapping your supply chain and identifying potential threats.
Risk Control
We work with our clients to establish risk control techniques based upon identified
threats. This may include the development of business continuity plans and
sourcing alternatives.
Risk Transfer
The insurance marketplace offers several products that allow manufacturers to
transfer supply chain risk.
First, coverage may be available under your property policy for contingent business
income losses. This coverage responds to business income losses when a supplier
cannot deliver product as the result of a loss by a covered peril.
BEWARE: If the coverage is not properly written, it may be limited to domestic
suppliers and exclude losses due to windstorm, flood, or earthquake.
Several insurance carriers have introduced a comprehensive Supply Chain
Insurance product. This product provides coverage on an “all-risk” basis and
extends beyond property damage claims to include political risk, marine risk, and
trade credit risk.
Arthur J. Gallagher Risk Management
Services, Inc. is a leading provider of We would appreciate the opportunity to meet with your team and discuss our supply
property and casualty insurance and chain risk management/insurance capabilities.
risk management services. With six
If you have any additional questions, please don’t hesitate to give Michael a call at
offices throughout the state, we are
(920) 380-2254 or email at Michael_Burg@ajg.com
well-suited to meet your insurance and
risk management needs.
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