{"id":901453,"date":"2023-07-24T16:18:07","date_gmt":"2023-07-24T22:18:07","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=901453"},"modified":"2023-07-24T16:18:12","modified_gmt":"2023-07-24T22:18:12","slug":"supply-chain-first-party-insurance","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/","title":{"rendered":"Tomorrow\u2019s\u00a0Supply\u00a0Chain\u00a0– First-Party Insurance Coverage for Supply Chains"},"content":{"rendered":"\n

David E. Weiss and Richard P. Lewis | Reed Smith<\/a><\/p>\n\n\n\n

Supply chain<\/a> disruptions due to natural and man-made events, such as the COVID-19 pandemic, climate change, and global and regional conflicts, have become more prevalent in recent times. Businesses need to focus on these issues more carefully as part of their risk management strategies. Many companies seek to insure potential losses caused by disruptions to their supply chain through first-party or property insurance coverage. The insurance industry has designed a range of coverages for this exposure, the main one being contingent time element (or dependent property) coverage, which provides coverage when (typically) physical loss or damage to a third-party supplier or customer prevents that third party from supplying goods to or purchasing goods from the policyholder. Policyholders need to be aware of certain key issues with this coverage.<\/p>\n\n\n\n

What policyholders need to consider<\/strong><\/p>\n\n\n\n

    \n
  1. Most of these coverage grants only provide coverage if the interruption is caused by physical loss or damage to the third party and not, for instance, a service interruption. There are clauses in the market, however, that expand contingent time element coverage to losses from all manner of events that may befall the property of the third party.<\/li>\n\n\n\n
  2. Most limit the \u201cdependent\u201d properties to those listed in the policy or to \u201cdirect\u201d suppliers or customers. Again, there are clauses in the market that expand the reach of coverage to \u201cdirect or indirect\u201d suppliers or customers, or suppliers or customers \u201cof any tier.\u201d<\/li>\n\n\n\n
  3. Relatedly, it is often possible to avoid a contingent business income loss \u2013 loss of income from interruptions to your supplier \u2013 by finding a new supplier, often at higher cost. This is a contingent extra expense, and companies should make sure they have this coverage with an appropriate limit.<\/li>\n\n\n\n
  4. These coverage grants often contain very low sublimits (e.g.<\/em>, $10MM in a policy with a Business Income limit of $400MM). Consider your level of exposure to dependent properties and whether they can be replaced easily.<\/li>\n<\/ol>\n\n\n\n

    There are broad contingent time element coverages available in the market, and these are often labeled specifically as supply chain coverage. If a business has large supply chain exposures, it should consider purchasing such coverage, which typically resolves the first three issues noted above. Many of these forms are new, and the language is untested, with few court interpretations. For this and other reasons, the limits offered by insurance companies for these bespoke supply chain coverages are often very low but, as with most things, can be negotiated.<\/p>\n\n\n\n

    \n\n\n\n

    When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

    David E. Weiss and Richard P. Lewis | Reed Smith Supply chain disruptions due to natural and man-made events, such as the COVID-19 pandemic, climate change, and global and regional conflicts, have become more prevalent in recent times. Businesses need to focus on these issues more carefully as part of their risk management strategies. Many… Continue reading Tomorrow\u2019s\u00a0Supply\u00a0Chain\u00a0– First-Party Insurance Coverage for Supply Chains<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14],"tags":[9895,11607],"class_list":["post-901453","post","type-post","status-publish","format-standard","hentry","category-construction-2","tag-advise-consult","tag-supply-chain-delays","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nTomorrow\u2019s\u00a0Supply\u00a0Chain\u00a0- First-Party Insurance Coverage for Supply Chains - Advise & Consult, Inc.<\/title>\n<meta name=\"description\" content=\"Supply chain disruptions such as pandemic, climate change, and global and regional conflicts, have become more prevalent in recent times\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tomorrow\u2019s\u00a0Supply\u00a0Chain\u00a0- First-Party Insurance Coverage for Supply Chains - Advise & Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Supply chain disruptions such as pandemic, climate change, and global and regional conflicts, have become more prevalent in recent times\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise & Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-24T22:18:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-24T22:18:12+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"Tomorrow\u2019s\u00a0Supply\u00a0Chain\u00a0– First-Party Insurance Coverage for Supply Chains\",\"datePublished\":\"2023-07-24T22:18:07+00:00\",\"dateModified\":\"2023-07-24T22:18:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/\"},\"wordCount\":463,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"Advise & Consult\",\"Supply Chain Delays\"],\"articleSection\":[\"Construction\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/\",\"name\":\"Tomorrow\u2019s\u00a0Supply\u00a0Chain\u00a0- First-Party Insurance Coverage for Supply Chains - Advise & Consult, Inc.\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\"},\"datePublished\":\"2023-07-24T22:18:07+00:00\",\"dateModified\":\"2023-07-24T22:18:12+00:00\",\"description\":\"Supply chain disruptions such as pandemic, climate change, and global and regional conflicts, have become more prevalent in recent times\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"name\":\"Advise & Consult, Inc.\",\"description\":\"Construction Expert Witnesses\",\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\",\"name\":\"Advise & Consult\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"contentUrl\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"width\":162,\"height\":75,\"caption\":\"Advise & Consult\"},\"image\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\",\"https:\/\/x.com\/adviseconsult\",\"https:\/\/www.linkedin.com\/company-beta\/204526\/\",\"https:\/\/www.youtube.com\/user\/MrConstructionExpert\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"caption\":\"admin\"},\"sameAs\":[\"http:\/\/www.expertwitnessinconstruction.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Tomorrow\u2019s\u00a0Supply\u00a0Chain\u00a0- First-Party Insurance Coverage for Supply Chains - Advise & Consult, Inc.","description":"Supply chain disruptions such as pandemic, climate change, and global and regional conflicts, have become more prevalent in recent times","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/","og_locale":"en_US","og_type":"article","og_title":"Tomorrow\u2019s\u00a0Supply\u00a0Chain\u00a0- First-Party Insurance Coverage for Supply Chains - Advise & Consult, Inc.","og_description":"Supply chain disruptions such as pandemic, climate change, and global and regional conflicts, have become more prevalent in recent times","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/","og_site_name":"Advise & Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2023-07-24T22:18:07+00:00","article_modified_time":"2023-07-24T22:18:12+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"Tomorrow\u2019s\u00a0Supply\u00a0Chain\u00a0– First-Party Insurance Coverage for Supply Chains","datePublished":"2023-07-24T22:18:07+00:00","dateModified":"2023-07-24T22:18:12+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/"},"wordCount":463,"commentCount":0,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"keywords":["Advise & Consult","Supply Chain Delays"],"articleSection":["Construction"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/","name":"Tomorrow\u2019s\u00a0Supply\u00a0Chain\u00a0- First-Party Insurance Coverage for Supply Chains - Advise & Consult, Inc.","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website"},"datePublished":"2023-07-24T22:18:07+00:00","dateModified":"2023-07-24T22:18:12+00:00","description":"Supply chain disruptions such as pandemic, climate change, and global and regional conflicts, have become more prevalent in recent times","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.myconstructionexpert.com\/blog\/supply-chain-first-party-insurance\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website","url":"https:\/\/www.myconstructionexpert.com\/blog\/","name":"Advise & Consult, Inc.","description":"Construction Expert Witnesses","publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization","name":"Advise & Consult","url":"https:\/\/www.myconstructionexpert.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","contentUrl":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","width":162,"height":75,"caption":"Advise & Consult"},"image":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","https:\/\/x.com\/adviseconsult","https:\/\/www.linkedin.com\/company-beta\/204526\/","https:\/\/www.youtube.com\/user\/MrConstructionExpert"]},{"@type":"Person","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","caption":"admin"},"sameAs":["http:\/\/www.expertwitnessinconstruction.com"]}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2ztG6-3Mvz","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/901453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=901453"}],"version-history":[{"count":1,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/901453\/revisions"}],"predecessor-version":[{"id":901454,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/901453\/revisions\/901454"}],"wp:attachment":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=901453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=901453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=901453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}