March Reveals New Program to Help Companies Protect Against Financial Consequences of Supply Chain Disruptions
Marsh, the world's leading insurance broker and risk advisor, today announced it has developed a breakthrough insurance program that can help companies manage the financial consequences of a disruption to their critical supply chains.
Marsh developed the program, known as Global Supply SecureSM, in conjunction with Lexington Insurance Company, a unit of AIG Commercial Insurance. Lexington will underwrite the insurance coverage through its offices in the United States, United Kingdom, Canada, and Bermuda. The coverage requires a supply chain risk assessment from Marsh's Risk Consulting practice.
Global Supply Secure is designed to protect companies whose operations rely on critical supplies of goods or raw materials. Under the program, businesses may be able to obtain broad coverage throughout a company's supply chain, including loss of a supplier, stoppage of the supply itself, or a related interruption in service. The coverage can apply to supply chain interruptions stemming from a wide range of perils, such as strikes, political risks, the outbreak of a pandemic, or delay in supply from a variety of causes.
"As businesses in nearly all industry sectors take advantage of globalization to reduce costs and achieve efficiencies, their supply chains have become the lifeblood of many of their production, manufacturing and distribution activities," said Robert Howe, Leader of Marsh's Global Property Practice. "While the economic benefits of such supply networks are clear, the risks have become more acute and a supply chain interruption can have potentially devastating effects on a business. Our new program approaches business interruption on a broad basis to help companies address a wide range of potential disruptions."
For businesses interested in the program, the first step in obtaining the coverage is to have Marsh's Risk Consulting Practice conduct a comprehensive supply chain risk assessment. Lexington Insurance Company will then use the assessment to underwrite the risk.
About Marsh
Marsh has 26,000 employees and provides advice and transactional capabilities to clients in over 100 countries. Marsh is a unit of Marsh & McLennan Companies (MMC), a global professional services firm with more than 55,000 employees and annual revenue exceeding $11 billion. MMC also is the parent company of Guy Carpenter, the risk and reinsurance specialist; Mercer, the provider of HR and related financial advice and services; Oliver Wyman, the management consultancy; and Kroll, the risk consulting firm.
Source: Source: Marsh | Published on July 28, 2008
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