Many small and midsize contractors dont consult their surety-bond underwriters soon enough after running into trouble that could trigger a bondan event that threatens a contractors ability to remain in business.

Any company involved in food production saw its Product Recall risk greatly magnified last year with the enactment of the U.S. Food Safety Modernization Act (FSMA), says Louis Lubrano, New York-based senior vice president of global crisis management for Liberty International Underwriters (LIU).

The National Council on Compensation Insurance Inc. (NCCI) reports that medical services now represent 60 percent of Workers Comp claim costs. In the past, indemnity costs made up the biggest part of the Workers Comp claim.

Kennametal Inc., a Fortune 1000 company that manufactures metal-product solutions for various industries, was not materially affected by the catastrophe in Japan, nor would a catastrophe elsewhere around the globe likely impair its operations extensively, says Michael Murphy, the companys manager of global P&C insurance.

Those who manage and underwrite risks for manufacturers are facing familiar risks with some challenging new twists.

Last year served as a wake-up call for manufacturers on the fragility of their supply chains. Catastrophes in 2011including massive floods in Thailand that disrupted electronic- and auto-parts manufacturerscaused record totals of $105 billion of insured losses and $380 billion of total economic damages worldwide, according to Munich Reinsurance America.

Fiscally fit bond principals with solid management plansand without lossesare discovering sufficient and inexpensive capacity for surety insurance, say brokers and underwriters.

Most manufacturers approach workplace safety as they did a generation ago, But there are new management systems that can guide employers to 60 to 70 percent reductions in injuries.