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4/6/2012 - III reminds businesses that certain insurance plans may be insufficient

Companies may not plan for an interruption in their supply chains.

More than a year after the economic fallout that resulted in the wake of the earthquake and tsunami that affected the earnings for thousands of businesses in Japan, the Insurance Information Institute is reminding business owners to make sure they have adequate amounts of business insurance coverage.

The III notes that many of today's business owners believe that business interruption coverage will be sufficient in any situation. While this is a crucial component of these types of plans, it may leave companies underprepared for potential financial crises, as it may not provide for all types of catastrophes.

As a result, business owners may want to inquire about supply chain insurance, which is traditionally more comprehensive and provides for damages that they have no control of, such as strikes, riots and pandemics. To learn more about supply chain insurance, click here.

"While insurance is an important component to help protect companies, it is only part of the solution," said Loretta Worters, vice president with III. "Businesses need to identify key supply chain risks and make sure to convey those risks to their insurer."

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