Supply chain disruption is no longer a headline risk — it’s a daily reality for many businesses. Manufacturers are waiting longer for imported components, retailers are absorbing rising freight costs, and construction timelines are stretching due to ongoing material shortages.

Geopolitical conflict, shipping delays, port congestion and labour shortages have reshaped how goods move around the world. As supply slows, costs rise — materials, labour and delivery included. While inflation gets the headlines, the bigger issue for many businesses is that recovery after a loss now takes longer and costs more.

At Action Insurance Brokers, we’re seeing this shift flow directly into insurance claims.

The Insurance Impact

Business interruption (BI) cover is particularly exposed. Many indemnity periods and sums insured were set when repair times were shorter and replacement costs lower. Today, a serious loss can take far longer to recover from, leaving previously “adequate” cover under‑estimated.

Insurance submissions also don’t always tell the full story. An ANZSIC code explains what a business does — not how resilient it is. It doesn’t capture reliance on single suppliers, supply chain concentration, or whether a business continuity plan (BCP) has been stress‑tested for today’s conditions.

That gap between assumed risk and operational reality is where businesses are most exposed.

Conversations Worth Having

If you haven’t looked closely at this recently, now is the time to ask a few practical questions:

• Do you know where your key suppliers are located?
• What happens if your primary supplier can’t deliver?
• When was your BCP last reviewed?
• Does your BI cover reflect how long recovery would realistically take today?
• Does your insurance submission show insurers how well your risk is actually managed?

These conversations often highlight exposures businesses didn’t realise they had.

Getting Ahead of the Risk

Prevention starts with visibility. Tools that support inspections, continuity planning and operational checks help reduce risk and demonstrate strong management to insurers.

Supply chain risk isn’t the same for every business or industry. That’s why insurance advice needs to be more operational, more specific, and better aligned to how your business really works.

If this raises questions about whether your current cover reflects today’s realities, it’s a conversation worth having now — not after a loss.

At Action Insurance Brokers, helping clients connect real‑world operations with effective insurance cover is what we do.