WGA InsureBlog

Virtually no airline is insured against business interruptions as a result of the volcanic ash that has grounded aircrafts throughout Europe causing huge financial losses this past week. But there could be some insurance coverage available for other businesses if the volcano eruption somehow adversely effecting your revenue stream. Do you have a plant or supplier in Europe that had to shut down and cease shipping product to you due to the ash cloud? The ash cloud could be considered volcanic action which is a covered peril on many property policies. Read more…

Yesterday’s New York Times describes possible harm to customers of biotechnology giant, Genzyme Corporation, arising out of the reduced availability of Genzyme’s products as a result of a plant shutdown caused by a virus contamination at Genzyme’s plant. The story relates that such a viral contamination is not uncommon in the production of biological products. The inability to supply life-saving drugs that have no easy replacement from other manufacturers, not surprisingly, may have led to adverse outcomes for Genzyme’s patients and this type of exposure to harm exists for many other drug and device manufacturers. Read more…

The $75 million theft of pharmaceuticals from an Eli Lilly warehouse on Sunday in Connecticut is just the latest in a series increasingly large thefts of prescription drugs. Authorities say the thieves lowered themselves from the roof of the warehouse after cutting a hole in it. According to Freight Watch International, a supply cain security consultant, the number of prescription drug shipment thefts quadrupled over the past four years. Read more…

We are finding more companies at risk of being dragged down by a single source supplier or other entity that is struck by a unforseen diasaster.  Ken Hoggins, WGA’s Property expert, explains why a close examination of all the viable parts of a company’s supply chain is crucial to managing risk; risks that not only your own company faces, but those risks that impact the interconnected chain needed to maintain your production and revenues.