Supply Chain Insurance

Insurance for science and technology businesses reliant on key suppliers

Where's the weak link in your operations? Modern technology businesses are often dependent on a complex and lengthy supply chain. What if a key supplier or outsourced research lab suffers an unexpected interruption to operations? Intelligent insurance arrangements can protect you against unexpected loss attributable to breaks in your supply chain.

7 SMART TIPS TO REDUCE SUPPLY CHAIN RISK IN SCIENCE & TECHNOLOGY

• Make an inventory of all your suppliers – tier them 1, 2 and 3.
• Check your Consequential Loss Insurance covers interruption at 1st, 2nd and 3rd tier suppliers – and make sure it reimburses committed costs that you can't recover.
• Assess the level of your reliance on each supplier in terms of income.
• Audit your suppliers - how strong are their financials? What plans do they have to ensure continued supply if they suffer an interruption? Are their materials readily available from another source? If no, how long would it take to find another source?
• Establish or review your contracts with them – what are their responsibilities to you?  Is there anything in the contract that leaves you exposed?
• Check the indemnity period in your own insurance - is it adequate?  How long might a serious interruption last? Involve your insurer in the process and share your contingency plans with them – it may save you money on your premium!
• Establish dual-source supply – if something goes wrong you’ll still have potential loss of income and increased costs, but the risk reduces, and hence your insurance premium may reduce.