Supply Chain Interruptions
May 6, 2025 | Insurance
In today’s interconnected world, supply chain interruptions can disrupt businesses of all sizes, causing delays, loss of revenue, and damage to customer relationships. From natural disasters to labor strikes or even international shipping delays, businesses in Tempe , Phoenix , Scottsdale , Tucson , Gilbert , and Chandler need to be prepared for unexpected disruptions.
At Riseson Insurance , we understand the challenges that businesses face when their supply chain is compromised. That’s why we’re here to help ensure your business is covered, no matter what obstacles arise.
A supply chain interruption occurs when there is a disruption in the production or delivery of goods and services, often caused by factors outside your control. Examples include:
Natural disasters like floods , wildfires , or hurricanes Labor shortages or strikes Geopolitical factors (e.g., trade wars or sanctions) Pandemics or health crises (like COVID-19) Cyberattacks targeting suppliers Transportation delays or port closures
For businesses in Arizona , especially those in industries like manufacturing, retail, and technology, supply chain disruptions can be particularly impactful.
While supply chain disruptions are often unpredictable, having the right insurance coverage can mitigate the financial risks and help your business recover faster. Some types of coverage to consider:
1. Business Interruption Insurance
This is one of the most crucial forms of coverage for businesses that rely on a steady supply of goods or services. Business interruption insurance helps replace lost income when your business is unable to operate due to a covered event, such as a supply chain delay caused by a natural disaster or a factory shutdown.
2. Contingent Business Interruption Insurance (CBI)
If your business depends on another company’s operations—such as a supplier or distributor—contingent business interruption insurance can cover the lost income if that business is disrupted. For example, if a supplier’s factory is damaged by a fire and they are unable to deliver products, CBI insurance helps protect your bottom line.
3. Property Insurance for Supply Chain Losses
If your goods are damaged or lost during transportation or in storage, your property insurance may cover these losses. This is especially important for businesses that ship products internationally or rely on warehouses and distribution centers.
With the rise of cyberattacks, many supply chains are vulnerable to data breaches and hacking. Cyber insurance can help cover the financial losses from supply chain interruptions caused by cyber threats, including ransomware attacks or theft of proprietary information.
Supply chain disruptions are inevitable, but the right insurance can help your business stay resilient. At Riseson Insurance, we’re here to ensure your business is ready for whatever comes your way.
Call us at 602-460-5470 today to discuss your business insurance needs and get a customized quote.