Some insurers cover Business Interruption or Contingent BusinessInterruption (CBI) losses that do not result from actual physicaldamage to a policyholder’s or its suppliers’ property.
|Under the property policy written by Factory Mutual InsuranceCo. (which does business as FM Global), CBI coverage is not limitedto loss resulting from suppliers’ facilities that arecompromised.
|If policyholders can adequately identify their suppliers, theinsurer can provide up to $100 million in limits covering CBIlosses stemming from utility-service interruptions; actions bycivil and military authorities; blockage of ingress and egress; andconstruction delays, says Gary Love, vice president and staffoperations underwriting manager at FM Global.
|“We’re trying to treat those locations as if the client ownedthem,” Love adds.
|Zurich writes up to $100 million in all-risk CBI limits todovetail with its coverage for named physical-damage perils. Amongother events, the all-risk policy would cover losses resulting frompower interruptions and ingress/egress blockages—two major causesof supply-chain disruption in Japan after the March 2011earthquake-triggered tsunami there, says Linda Conrad, theinsurer’s director of strategic business risk management.
|Allianz Global Corporate & Specialty earlier this yearlaunched a nondamage Business Interruption and CBI insurance policythat provides up to $50 million in limits to large industrialcompanies.
|It covers losses resulting from political risk, a labor strikeor lockout, utility-service interruption, insolvency of a supplier,actions by military authorities, and ingress/egress problemsunrelated to military actions.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
