President Donald Trump’s recent escalation of tariffs has sent ripples through global trade networks. As container shipments from China to the U.S. plummet, with the Port of Los Angeles anticipating a 35% drop in import volumes, the insurance industry faces a new frontier of risk assessment.
Cargo & Marine Insurance: Navigating Uncharted Waters
The immediate impact on cargo and marine insurance is profound. Elevated tariffs inflate the value of goods in transit, thereby increasing the potential liability for insurers. Standard cargo policies, which often exclude tariff costs, may leave importers exposed to significant financial gaps. Additionally, the rush to import goods before tariff implementations has led to overstocked warehouses, raising concerns about storage risks and coverage adequacy.
Business Interruption Insurance: The Domino Effect
Supply chain disruptions are no longer hypothetical scenarios but present realities. Delays in obtaining tariffed materials and components have extended repair and replacement timelines, leading to prolonged business interruptions. This not only affects revenue streams but also escalates claims under business interruption policies. The ambiguity surrounding tariff applications across various sectors further complicates risk evaluations.
Secure Your Position in Shifting Markets
In this volatile landscape, businesses must reassess their insurance strategies. Engaging with experts who understand the intricate interplay between global trade policies and insurance coverage is crucial. Panthera Insurance Partners offers tailored solutions to navigate these complexities, ensuring that your business remains resilient amidst the shifting tides of international trade.
