Saturday, 2 August 2014
Business Interruption Insurance (Crop Insurance) a Rain of Blessing Amidst a Dry Spell
This domino effect in the supply chain has long-term implications. It only takes a faulty chain link to sever the entire chain clean off; for a business hanging onto this chain, severance means a long fall. Something has to support the failed link until the situation is stabilised; something like business interruption insurance in the form of Crop Insurance. Supply issues just so happen to be right up the alley of business interruption insurance. An insurance policy will cover net losses brought about by these supply issues, operating costs, and costs of provisional measures to counter these issues. Depending on the nature and gravity of the issue, insurance coverage may last for months or years. Crop Insurance is protecting the loss of revenue (partially or totally) from fire, spray drift and mainly hail. Other businesses may utilise business interruption cover in the event of damage to their premises and facilities in preparation for or during the crop season.