Tokio Marine Kiln (TMK) and Marsh have unveiled a new insurance product aimed at protecting ports and terminals from business interruptions caused by trade disruptions. This exclusive facility offers up to $50 million in coverage for losses linked to geopolitical events, extreme weather, and other external factors impacting global trade.
Louise Nevill, CEO of UK Marine at Marsh Specialty, emphasized the growing risks faced by businesses involved in international trade. “Business interruption events stemming from geopolitics, trade disruption, and weather-related incidents are increasing in frequency and severity around the world, resulting in debilitating consequences for businesses,” Nevill said.
“This new facility provides our port and terminal clients with a readily available layer of coverage to protect their operations and enable a swift return to normal when these disruptive events occur,” she added.
The standalone coverage, developed by Marsh’s Marine Cargo & Logistics specialists, with Ed Parker, head of Special Risks at TMK, leading the initiative, is now accessible to Marsh clients globally. It fills a critical gap in traditional insurance policies, which often only cover interruptions caused by physical damage or direct barriers to access at ports. The new product extends protection to scenarios where ships are diverted or refuse to dock due to external forces such as geopolitical tensions or adverse weather.
This launch follows an earlier product from Marsh offering $50 million in coverage for port blockages caused by third-party incidents, such as vessel sinkings or natural disasters.
The increasing disruptions in global trade, including the Red Sea crisis, the ongoing conflict in Ukraine, and reduced traffic through the Suez Canal, underscore the pressing need for comprehensive insurance solutions that go beyond standard coverage.
