Risk & Business Magazine CMW Spring 2017 | Page 31

SUPPLY CHAIN
operations based in BC and along the
West Coast is the inclusion of earthquake
insurance. If you have assets located in,
or moving through, territories deemed
to be at high risk of earthquakes, the
insurance provider will often include the
risk in the Inventory/Stock Throughput
policy without the rate loading or high
deductible that are applied to traditional
policies.
SELLING PRICE VALUATION
Another option that can be included
is selling price valuation, ensuring
that reimbursements cover the selling
markup for finished goods in inventory.
Selling price valuation can be added
to your Inventory/Stock Throughput
policy in place of a separate Business
Interruption policy. Additionally,
businesses can also secure policies that
include reimbursement for government
detainments—even if the goods
themselves are not damaged.
From a claims administration perspective,
companies need only correspond with a
single claims team that will handle all
issues when Inventory/Stock Throughput
policies are used. Not only can working
with a single claims team accelerate your
reimbursement process, but your business
is also free from negotiating with several
carriers and there is no confusion over
who covers what portion of the losses.
The ultimate goal, of course, is to keep the
business running with the least amount of
disruption and expense possible.
Due to its complexity, not all insurance
companies will offer these types of
policies, and the terms and conditions
may differ widely among the ones that do.
It’s best to work with a broker you trust
— or find one with a sterling reputation
in this area — to work out the finer points
of this coverage and recommend the best
choices on the market for your individual
circumstances.
For more information, contact Mark
Lee at 604-484-4999 or mlee@
cmwinsurance.com. +
It’s not what
we do that makes
us different...
it’s how we do it!
BY: MARK LEE,
CMW INSURANCE
Mark Lee is a Client Executive and Vice
President at CMW. He brings over
20 years of experience developing and
structuring large, complex insurance
and risk management programs for the
manufacturing, construction, municipal,
and transportation sectors. Mark is
a past director of both the Canadian
Manufacturers & Exporters and the
Insurance Brokers Association of British
Columbia. He is also a member of the
Insurance Institute of Canada and the
Global Insurance & Risk Management
Institute.
Specialty
Insurance
and Surety
Solutions
a step above
Learn more at www.trisura.com
Trisura Guarantee Insurance Company is a Canadian owned and operated Property and
Casualty insurance company specializing in niche insurance and surety products. We
are a proud supporter of the Insurance Broker’s Association of Canada.
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