Hunton Insurance Recovery Blog

Insurance can mitigate cross-border risks arising out of geo-political and government-related disruptions (such as war, corruption or expropriation), social unrest and cyber vulnerabilities. Different insurance products respond to these risks in different ways. For example, contingent business interruption coverage responds to mitigate lost profits resulting from an interruption of business caused by physical damage to a supplier’s property, while cyber insurance protects against the costs of digital threats, such as ransomware attacks, phishing or hacking. In a recent Supply & Demand Chain Executive article, counsel Jorge R. Aviles and associate Jae Lynn Huckaba analyze how the industry can utilize these different insurance products in unison and build a comprehensive insurance portfolio to maximize coverage and minimize losses from the most common cross-border risks.

As governments lift COVID-19 lockdown restrictions and economies begin to reopen, consumer demand for products has skyrocketed. Amid the spike in demand, businesses are struggling to meet consumers’ needs due to ongoing global supply chain disruption. The disruption stems from many factors, including the lingering effects of COVID-19 mitigation strategies that slashed the production of goods, as well as a shortage of warehouse workers and truck drivers. Insurance is a key component of supply chain risk management. Policyholders who rely on a supply chain can use insurance to protect against supply chain risks. Here, we explore supply chain risks and how insurance can mitigate those risks.

Last year, we wrote about the UK’s National Security and Investment Bill, which was pending approval at the end of 2020. A few months into the New Year, the bill received Royal Assent, making it the “biggest shake-up of UK’s investment screening regime in 20 years.”

The NSI Act is now scheduled to take effect on January 4, 2022. However, businesses should be aware of the Act’s requirements now because it has a retroactive effect, where the government can “call in” transactions that have closed since November 12, 2020 for in-depth review if it believes a transaction gives ...