May 2007

Supplier Demand

In the summer of 2005, shortly after Hurricane Katrina, the National Association of Realtors reported that the massive reconstruction efforts along the Gulf Coast would result in a materials supply shortage with national implications. In addition to the more than 200,000 homes and businesses that were damaged or ruined, many of the suppliers of the components needed for rebuilding were headquartered along the Gulf Coast and were destroyed.

There are events that have no direct effect on your physical location yet have a massive impact on your bottom line. Consider the impact on your business if a major supplier of materials were all but wiped out by a devastating storm, fire or other catastrophe. What about the business you would lose while hunting for new suppliers and making arrangements with them? What about the contracts already underway that would stall?

But there’s hope. A business interruption policy with a “Business Income from Dependent Properties” endorsement will help pay costs associated with losing a supplier, including locating new ones. Don’t let their unfortunate loss become your unfortunate loss. For more information on this endorsement, call our service team today.