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Strike in Greece causing delays

Major interruptions to transportation services in Greece are expected today and tomorrow as a result of a 48-hour strike by public and private sector workers. According to FreightWatch Intelligence Division, public transportation and commercial flights will be affected by the strike along with ferries serving Greek islands, local and national train services. Companies transporting goods throughout this area are urged to plan supply chain activities taking into account these events.

As for potential insurance coverage in the event of a strike, most Ocean Marine (aka Worldwide Transit) policies are written in accordance with the standard policy clauses established by the American Institute of Marine Underwriters (AIMU). At the time of purchase, a client has the option to elect or exclude coverage for War, Terrorism (including TRIA) and Strikes, Riots and Civil Commotions (SR&CC). If coverage for SR&CC is elected, a standard AIMU endorsement is attached to the policy. It’s important to note that the coverage grant applies to physical loss of or damage to property insured directly caused by strikers, locked-out workmen or persons taking part in labor disturbances or riots or civil commotions. Also covered is physical loss of or damage to property insured directly caused by vandalism, sabotage or malicious acts.

Given the current strikes taking place at major places of commerce in Greece, this is an importance nuance when determining the extent of coverage within an Ocean Marine policy. If goods are physically damaged as a result of strike, say because of trampling or jettison off a port, and the insured purchased the appropriate coverage, there may be coverage within the policy. However, any delays or disruptions to the insured’s the supply chain caused by strike would not be covered. For example, if goods cannot be unloaded from a ship because of a lack of workers at the port and the insured suffers lost revenue as a result, the policy would not respond to such loss. Likewise, any damage (including physical) to environmentally-sensitive goods resulting from strike would not be covered.

Organizations in the food, beverage, pharmaceuticals and similar operations should take note if they anticipate the movement of goods through Greece over the next few weeks. There are specialized insurance products available to address both the trade disruption and spoilage exposures resulting from strikes. Alternatively, the insured may choose to mitigate the risk via other methods such as rerouting goods or purposely delaying shipments.

(image via Reuters) 

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William Gallagher Associates is a leading provider of insurance brokerage, risk management and employee benefits services to firms with complex risks and dynamic needs, within industries that include technology, life sciences, financial risks, health care, renewable energy & clean technology, and environmental services. WGA has offices in Boston, MA; New York, NY; Hartford, CT; Princeton, NJ; Columbia, MD; and Atlanta, GA.

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