Covering all angles

CBI cover is usually purchased by way of extension and there are extensions specifically designed for port operators available on the market.

CBI risks are typically those which involve disruption to the assured’s business which is consequent upon some less direct intervening factor. For example, if a key bridge or access road to a port were to be blocked by flood or landslide then, even where no property damage is suffered by the assured, the business interruption loss suffered as a result would be likely to be covered under a suitably worded denial of access extension.

Similarly, port operators are reliant on manufacturers, commodity producers, logistics and rail companies for the continuous flow of products to the ports for shipment and suitable extensions can be purchased to protect against interruption to business consequent upon disruption to this supply.

Other commonly purchased CBI extensions which may be of interest to port operators include those which protect against interruption of key utilities (i.e. electricity, gas, water), loss of attraction, order of civil or public authorities and outbreak of notifiable disease.

To this end, and particularly in the context of CBI claims, it will be vital for an assured to have a clear understanding of its supply and customer chain and its key dependencies, as well as a well-kept documentary trail by which its losses may be evidenced.