Supply Chain Insurance and Contingent Business Interruption Insurance – Two Overlooked Areas of Insurance Coverage.
By Michael J. Faul, Jr. Esq. and Adam K. Gallagher, Esq.
Risk management is increasingly a major concern that a business cannot ignore. When tumultuous times such as the global pandemic happen, businesses and individuals look to their insurance policies for protection. Insurance brokers and agents sell boilerplate “off the shelf” policies that are crafted by the insurance industry, naturally to the insurance industry’s advantage. These same “off the shelf” policies are sold to both small businesses and global manufacturing companies alike. Therefore, it is important that a business have an attorney review its insurance policies to identify the various coverages that the business has, in order to identify all latent defects in a business’s insurance portfolio, including gaps in coverage and duplicate coverages. An insurance coverage attorney can work with a business and help to protect the business’s vital interests. Many commercial entities and individuals have multiple lines of insurance that need to be reviewed to ensure that said entity or individual is properly covered and to avoid duplicate coverages and excessive premiums.
For those businesses which rely on the supply chain, losses have been mounting due to shipping delays, which are exponentially greater for those which ship perishable goods in cold storage. The Secretary of Transportation has acknowledged that the current supply chain issues are going to continue into the foreseeable future. However, a business can be covered for these risks.
The supply chain crunch is one of those events where it is important to have a trusted insurance lawyer conduct a review of all of your insurance policies to determine whether there are hidden coverages and/or to identify additional coverages that can help in the future.
There is insurance coverage available that can help alleviate some of the mounting losses that can occur because of events that affect the supply chain. The right supply-chain insurance policy can cover losses caused by the supply chain for any number of risks including; 1) Natural disasters, 2) Industrial accidents, 3) Labor issues such as strikes and shortages, 4) Production process problems, and 5) Regulatory actions, among many others. Supply chain coverage is the type of hidden coverage a business may have or need to protect its profit line and customer relationships in the future.
It is important to have an attorney analyze coverage before a claim is made or coverage is bound, to assist in maximizing a business’s risk mitigation plan.
Herold Law, P.A., has skilled attorneys who have helped corporate entities realize significant cost savings off premium bases exceeding $500,000 that far outweigh the legal costs associated with an insurance policy review. A policy review should also be performed on renewal policies, and is even more of a priority now, as many commercial insureds are facing premium increases of a minimum of 30-40%. During a policy review, we also work with multiple risk management specialists in minimizing risk and avoiding excessive premiums, gaps in coverage, and in selecting experienced brokers and reputable insurance carriers.
Michael J. Faul, Jr., Esq., and Adam K. Gallagher, Esq., have a combined decades of experience with insurance coverage matters representing policyholders and insurance carriers. Michael and Adam have an understanding of the intricacies that is crucial to choosing the right insurance coverage for the right price.
When this much is on the line, it is essential to have members of your insurance team who are watching out for you and not an insurance company’s bottom line or a broker looking for a commission.
When an insurance dispute arises, our New Jersey insurance lawyers at Herold Law, P.A. can help. We will fight to secure the benefits you deserve. Call us today at 908-647-1022 or contact us online for an initial consultation. Located in Warren, New Jersey, we serve clients throughout the state.