Ramifications from Japan disaster hits industries around the world

Japan Businesses Shut DownThe people of Japan know that it may take years to get their country back to some stage of normal again. The powerful quake and tsunami that devastated areas of Japan two months ago are having some lingering effects in the United States also.  At least one third of businesses in the states have experienced supply problems that have disrupted their normal work flow.

A recent market study shows that more than 80 percent of all businesses surveyed had experienced some type of business interruption due to the disaster in Japan. Slightly over half experienced problems getting supplies and around 55 percent of the companies had trouble shipping supplies to customers.

More than 45 percent of the companies affected had yearly sales of over five billion dollars. Although most of the companies had insurance coverage for natural disasters, close to 30 percent of them lacked any coverage for issues affecting their ability to receive needed supplies.

A large percentage of companies lacked protection in the event they could not access any of their records or documents. More than half of the companies had no protection pertaining to nuclear issues, and at least half had no coverage to help with relocating employees and their families if it were needed. This aspect is referred to as “human capital” matters.

The brokers and agents who have some of these business clients are being given an opportunity to show them the significance and importance of having an organization that is equipped to handle global situations such as this. Insurers that can give knowledgeable advice and be supportive throughout the entire process prove their irreplaceable value.

When the companies were asked about their agents or brokers contributions, they repeatedly responded with two things that were most helpful to their business. The first was that the broker could give them specific advice on the best way for them to handle issues that were pertinent to their company.

 Secondly, insurers able to offer assistance in Japan at the point of problem origin, earned high marks from the businesses as most valuable and useful in help.

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