THE GRINCH THAT STOLE CHRISTMAS (THROUGH SUPPLY-CHAIN DISRUPTION) By Kevin C. Amrhein, CIC, CBIA “For Christmas this year won’t be ruined by I, but rather by stores all short on supply.” -The Grinch, 2021 Confession: the quote isn’t real. But when it comes to ruining the holidays, there’s a new Grinch in town, and his dirty tricks of choice are empty store shelves and full container ships still waiting to port. If 2020 will go down in history as “that year we couldn’t do anything,” 4
then 2021’s legacy will be “that year we couldn’t get anything.” Reports of supply shortages are relentless and threaten the livelihood of businesses desperate for raw materials and finished goods. Covid, labor shortages, surging demand, and weather are commonly cited as culprits. But this is a column about insurance, so here’s why I’m doing this to you. Businesses interested in mitigating the severity of supply-related losses may consider insurance. DECEMBER 2021
FIRST, THE REALLY BAD NEWS Insuring financial losses stemming from supply-chain disruption is challenging for many reasons. Perhaps the biggest hurdle is the broadness (or more accurately, lack thereof) of available cover. For example, finding a policy that includes governmental action (e.g. ordered port closure due to Covid outbreak) or labor shortage as triggers for coverage will be difficult.
