Disruption to supply chains can be an important element of risk pricing in insurance. This has implications for transport property insurance and property policies. The latter can extend the process of claim settlement.
It is worth emphasising that the risk associated with disrupted supply chains is an important factor in a company’s operational risks. As a rule of thumb, the above applies to companies whose activities require importing goods. Indeed, disrupted supply chains may result in longer lead times and influence the margins of a particular business. The above may also affect the time taken to settle claims, and at the same time: their cost.
Extended supply chains should therefore be taken into account when establishing insurance protection schemes.
Importers and exporters should bear in mind that the essence of transport cargo insurance is to cover damage caused by destruction or damage to transported goods. Damage caused by delayed delivery – in principle – will not be covered. Liability insurance of those responsible for the delay should take effect in such a situation. It is worth examining the policies when establishing a business relationship in order to be sure of compensation after damage. Furthermore, the consequences of immaterial damage caused by delays do not fall within the scope of cargo policies.
It is also worth bearing in mind that a further consequence of a delay in delivery may be the incurring of civil liability for non-fulfillment of the delivery agreement or the calculation of contractual penalties for this. It is therefore not only the loss of the property being transported. The amount of such claims may many times exceed the value of the property whose delivery has been delayed or has fallen through.
