The AIG Companies introduced Global Supply Secure, insurance that helps mitigate the financial impact of supply chain disruptions. Jointly developed with Marsh, Global Supply Secure will be underwritten domestically by Lexington Insurance Company, a unit of AIG Commercial Insurance, and overseas by American International Underwriters (AIU), AIG’s foreign general insurance operations.
Global Supply Secure is enhanced contingent business interruption coverage (CBI) that responds to potentially disruptive events within an insured’s supply chain generally not included in a CBI cover, including: strike, political risks such as expropriation and imposition of import/export restrictions, insolvency of a named supplier, service interruption, government investigation, and pandemic, in addition to the standard property perils typically covered in CBI policies.
Global Supply Secure protects against loss of business income due to disruptions at named suppliers and throughout an insured’s global transportation network.
“Global sourcing, lean production and just in time inventory strategies have produced substantial savings and increased risks for many manufacturing firms, and make supply chain management more critical,” said George Stratts, executive vice president of Lexington.
Global Supply Secure is initially available to manufacturers who have received a comprehensive supply chain vulnerability assessment from Marsh’s Risk Consulting Practice.
All products are written by insurance company subsidiaries of American International Group, Inc. Coverage may not be available in all jurisdictions and is subject to actual policy language. As a surplus lines insurer, Lexington Insurance Company does not generally participate in state guaranty funds. Non-insurance products and services may be provided by independent third parties.
Source: American International Group
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