Business Interruption & Supply Chain Disruptions in Canada: Risks, Insurance Gaps & Solutions
From global shortages to domestic transportation delays, supply chain disruptions are increasingly affecting Canadian businesses of all sizes—leading to production slowdowns, lost revenue, and frustrated customers.
But the critical question remains:
Does your business interruption insurance cover these risks?
🔍 What’s at Stake
When essential parts, inventory, or raw materials are delayed or unavailable, operations can quickly stall. If your business cannot deliver products or services, the financial ripple effect can be severe.
📉 Common Impacts in Canada
- Delayed imports caused by port congestion or customs issues.
- Trucking and rail interruptions due to labour strikes or extreme weather.
- Manufacturing backlogs from international suppliers.
- Rising costs of goods that erode profit margins.
⚠️ Insurance Gaps to Watch
- Standard business interruption coverage often requires direct physical loss to trigger a claim.
- Supply chain delays may only be covered under contingent business interruption (CBI) policies.
- Not all policies include CBI—and those that do may require named suppliers or specific perils.
✅ Risk Management Tips
- Review your policy to confirm CBI or supply chain endorsements.
- Map out critical suppliers and assess their vulnerabilities.
- Diversify suppliers or build inventory buffers where possible.
- Discuss time limits and indemnity periods with your broker.
📬 If you’re uncertain how your business would withstand a prolonged supply disruption—or want to ensure your coverage reflects today’s global realities—it’s worth having a conversation.
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