In late April, ISO released a newSupply Chain coverage endorsement that includes second-tiersuppliers.

The Dependent Property Coverage (DPC) endorsement is part of theregular Business Income program but targets situations when asupplier is unable to deliver products or services because of aninterruption in the business of an entity upon which the supplierrelies for materials or components, says Stephen C. Clarke,assistant vice president, Commercial Multi-Line Division for ISO,the Jersey City, N.J.-based company that is a member of the VeriskInsurance Solutions group at Verisk Analytics.

This type of second-tier exposure was encountered last year bycertain car manufacturers and computer-hardware manufacturers whensilicon microchip production in Japan was interrupted following theearthquake and tsunami.

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