Marsh launches new trade disruption facility with $50m of capacity

Marsh and Tokio Marine Kiln (TMK) have launched a new trade disruption facility for ports and terminals.

The proposition offers capacity of up to $50m (£37.4m) for business interruption (BI) losses associated with trade disruption, such as the impact of geopolitical events and weather-related incidents.

It has been developed jointly by Marsh’s marine cargo and logistics specialists and TMK.

Louise Nevill, UK chief executive for marine at Marsh Specialty, said: “BI events stemming from geopolitics, trade disruption and weather-related incidents are increasing in their frequency and severity around the world, which is resulting in debilitating consequences for businesses involved in international trade.

“This new facility offers our port and terminal clients a rapidly available layer of cover to protect their operations and facilitate an expeditious resumption of normal operations when these events occur.”

Conflicts

This comes after Marsh launched a $50m (£37.4m) port blockage insurance facility, which provides clients with cover for loss of revenue caused by third-party accidents.

Its latest proposition comes due to global conflicts disrupting trade globally.

“Vessels are being diverted or opting to take new routes to avoid conflict zones and ensure safe passage,” the broker said.

Its latest trade disruption facility will be led by Ed Parker, TMK’s head of special risks.

He said: “Recent geopolitical turmoil has exposed a clear gap in the standard cover available to ports and other cargo facilities.

“The threat posed by conflict has rendered many established routes impassable. Trade has been disrupted globally and the financial impact on many operators has been immense.

“Developing innovative solutions that reflect changing risks and respond to client demand is core to the TMK approach and we look forward to working with Marsh and port businesses around the world to provide a much needed solution to the threat posed by trade disruption.”