The Impact of Supply Chain Issues on Insurance
Businesses across the UK are being affected by supply chain issues that have occurred following the events over the last few years, such as the pandemic and the War in Ukraine.
Supply chain issues can impact insurance claims and have been heavily impacted, specifically those in the residential and commercial business properties; this is due to the cost and time taken to settle claims. We want you to be aware of the potential risks and impacts that supply chain issues can have on your business.
Food and Drink
Restaurants and food and drink businesses may need more stock. We have all seen the bare shelves in Supermarkets following shortages, which may cause concern for those who sell food and drink products, such as restaurants.
This could cause insurance claims, as companies may miss out on the essential stock, meaning orders are cancelled or business is missed out on. Again, this may require an insurance claim to cover the loss.
When it comes to home property claims, the cost that could occur through lack of availability of materials could have a significant effect. Many materials have vastly increased in cost over the last couple of years, and this is being exacerbated by the lengthy time delays in availability. This means that the start dates of repair works can be many months from when the damage occurred, resulting in costly insurance claims.
Commercial Business Property
From a commercial property standpoint, we are seeing similar problems, which means businesses are forced to be out of action for longer. There are also increased costs with claims being made following fire and escape of water.
Clients can come to their brokers with these concerns, and brokers can advise businesses and individuals impacted on the next steps and potential risks that may occur when making a claim.