Earthquake and Tsunami May Trigger Contingent Business Interruption Claims

The economic impact of the earthquake in Japan and the resulting tsunami will reach beyond Japan. Businesses in the U.S. and elsewhere that use Japanese-made parts or supplies may face disruptions in the supply chain and result in Contingent Business Interruption Claims.

Spring 2011

On March 11, 2011, a massive 9.0-magnitude earthquake and resulting tsunami hit northeast Japan, causing thousands of deaths and extensive property damage.  The economic impact of the earthquake in Japan and the resulting tsunami will reach beyond Japan. Businesses in the U.S. and elsewhere that use Japanese-made parts or supplies may face disruptions in the supply chain and result in Contingent Business Interruption Claims. Our "Special Endorsement" newsletter addresses issues related to business interruption claims resulting from damage to suppliers' property.

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