WORKERS' COMPENSATION / SUPPLY CHAIN AMONG MANUFACTURING CLIENTS’ BIGGEST COVERAGE CONCERNS
While interest in Cyber Liability coverage is increasing, Lockton's Jay Little says that Workers' Compensation remains the No. 1 insurance concern for manufacturers as growing health-care costs continue to push rates higher.
Managing their supply chains is his clients' second-biggest concern, which goes hand-in-hand with Contingent Business Interruption (CBI) coverage-which pays losses that occur when a member within an insured's supply chain has a loss that impedes its business (i.e., when a supplier can't get raw materials to the manufacturer).
"Hurricanes in Houston can shut down refineries and halt the supply of resin," he explains. "Our client may not receive a sufficient supply of resin or may pay a premium to go outside negotiated contracts. A CBI policy will pay for the loss of income in this scenario."
Other Top-5 concerns for Little's manufacturing clients: Trade Credit, Patent Infringement and Political Risk, for accounts with foreign operations.
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