The impact of global events on business insurance: pandemics, climate change, and geopolitical risks
As the world becomes increasingly interconnected, global events have a greater impact on businesses of all sizes. From pandemics to climate change and geopolitical risks, these events can have a profound effect on a company’s bottom line and its needs.
Pandemics, like the one the world is still living through with COVID-19, have highlighted the importance of having appropriate business financial protection in the form of insurance coverage or saving funds. Business interruption insurance, for example, can help companies recover lost income and pay for additional expenses during times of crisis. It is important to carefully review policy language and exclusions to ensure that pandemic-related claims are covered, however, most business policies nowadays will probably include some kind of protection for these types of events. Make sure to go through your policy with your agent to ensure you’re getting the protection your business needs.
Climate change is another global event that can have a significant impact on business stability. Increased frequency and severity of natural disasters like hurricanes, wildfires, and flooding can disrupt supply chains, damage property, and cause business interruptions. Climate-related risks can be mitigated with appropriate prevention plans, like a fund for emergencies, or appropriate insurance coverage, such as property and casualty insurance and business interruption funds.
Other risks to keep an eye out for are geopolitical risks, such as trade disputes and political instability, which can also have an impact on businesses. For example, new tariffs or trade agreements can impact supply chain costs and disrupt manufacturing processes. Political instability in a country where a business operates can lead to business interruptions or property damage. To mitigate these risks, businesses should consider political risk prevention measures and supply chain disruption insurance. As global events continue to impact businesses, it is crucial for companies to assess their insurance needs and ensure that they have appropriate coverage and prevention plans.
Do you have any questions about how to protect your business? Contact us! At AIR Insurance, we are ready to help you at any time and build a custom plan that fits your business needs with our “360º Insurance Guidance”. For more information, call +52 55 4444 6043 or send us an email at info@air.com.mx
The information in this article is subject to terms and conditions applicable at the time of writing. If you have any questions about the current applicability of this information, please contact an AIR Insurance Brokers advisor.
