Sunday, August 06, 2017

Delaware Business Insurance Update From CNC Insurance Associates Inc. "When Your #1 Supplier Can't Supply, Then What ? 8-6-17

Most business owners cover their loss of business income. This coverage is included in most business owners policies and is easily added to Propery & Liability package policies. But what happens when the business loses income because their main supplier cannot supply the products or services the business needs? This type of coverage is called Contingent Business Income. In today's "just in time" inventory supply lines, businesses do not stock as much as they use to. A business can order online at night and by the next day have thier supplies from their favorite vendor. However if a main supplier has a claim that prevents this "just in time" delivery, the business owner could lose money. This is especially true with specialty products or supplies that come from only one or two vendors. It does not take much for a business to lose income when their shipments of inventory are delayed. Customers do not want to wait for a new order to come in from other vendors that cause major delays. They will just look elsewhere. Don't forget to look into Contignent Business Income, as an added protection to your insurance portfolio. Talk with your insurance professional and do a risk assessment of your vulnerabilities. Be more aware if you have specialty products coming from only one or two suppliers. Until next time be careful out there and know your risks.

G. Kevin Nemith, CNC Insurance Associates & The Business Insurance Center
Serving DE,MD,PA, NJ, VA