Abram Interstate Insurance Services, Inc., CMGA

Helping Independent Insurance Agents Since 1996

Supply Chain Risk Management

Published on June 12, 2013

Companies who have noticed an expansion in their supply chains are at risk for developing an unstable supply chain. The organization supported by numerous suppliers are at risk of becoming unstable in the event of business disruptions. In cases of uncertainty where changes in business cycles and consumer demands occur, the business is at risk for disruption. Weather challenges and man-made disasters can really be detrimental to a manufacturing facility. In these scenarios, customers are affected; productivity challenges arise; and profitability is lowered.

 

Real challenges in everyday business

 

Unforeseen challenges with domestic and international suppliers are reasons for concern. Manufacturers in the agricultural business have a lot at stake. Political events, conflict and natural disasters are a constant threat for those who rely on outsourced suppliers to meet their requirements. Companies who produce locally face similar challenges from potential strikes, labor disputes, droughts and natural disasters. An egregious error made by a supplier that violates the regulatory restrictions in place puts the business at risk for loss.

 

Importance of coverage

 

Companies, manufacturers and commercial growers can only do so much to manage the risks of doing business. Business interruption can happen to the most prepared businesses. Agri-business insurance is designed to minimize the impact of interruption and other disturbances in business that can put the company on the hook for thousands. Producers can be confident that interruptions and similar emergencies don’t have negative consequences for the business. Commercial license insurance provides coverage for large commercial growers who face these risks everyday.

 

Beyond business interruption

 

In addition to the basic business interruption scenario, Abram Interstate Insurance companies offer even more features for agricultural businesses. A comprehensive policy in place will cover equipment breakdown, products, operational components, and any services performed for any customer or client. Employment lawsuits and automobiles associated with the agri-business can even be covered.

 

Abram Interstate Insurance works with commercial growers to help them manage the risks and challenges they face everyday in business. Unpreventable, and potentially devastating, events that can costs companies millions in losses can be covered with the right agri-business insurance plan in place. Commercial lines insurance is recommended for all commercial growers and ranchers.