If you are like most corporate counsel, you’re happy to refer all insurance-related issues to your carrier or, better yet, to your company’s insurance department. Insurance law is highly complex and insurance policies are about as fun to read as treatises on the feudal tenures. With this in mind, we’ll keep our insurance postings as pithy as possible.
Today’s posting is on “contingent business interruption insurance” – a veritable mouthful of insurance verbiage. Fortunately, Alan R. Miller of the Boston office of Robins, Kaplan, Miller & Ciresi LLP has provided a highly informative article on the topic that is a must-read for all in-house counsel. Basically, contingent business interruption insurance can protect your company’s earnings in the event of a loss or physical damage to the property of your company’s suppliers or customers. Many companies are heavily dependent on raw materials from key suppliers to make the products they sell to consumers. What happens if the supplier suffers a loss and cannot continue to make deliveries? If you do not have contingent business interruption insurance you may be out of luck. Read Alan’s article today and get informed – then touch base with your insurance department and/or carrier to make sure that your company has the coverage and limits it needs to protect its financial future.