Practical supply chain considerations and pre-emptive measures

Practical supply chain considerations and pre-emptive measures could include:

  • stock-piling key materials or resources,
  • providing early delivery to customers where possible,
  • implementing a communication plan (even simply as part of the what-if business continuity planning) to engage with the counterparties of key contracts in the event of a pandemic both from the early stages and throughout the affected period, or
  • checking whether the business is insured, such as:
    • Business Interruption – covers losses arising from certain types of business interruption and may include a business shut down on government advice (although we are not quite there yet)
    • Keyman Insurance – covers losses arising from the death or incapacity of key personnel.
    • Corporate Travel/Medical insurance – this might not cover trip cancellations if the company or the employee cancels for fear of infection or disruption, rather than the cancellation occurring as a result of the airline’s decision or the government’s direction.
    • Corporate medical cover – this may not cover an infected employee if they are infected after travelling to a seriously affected region against official government advice.

You should check the terms of the policy carefully and ensure that the actual position is communicated to the managers or board as part of the business continuity discussions and preparations with related risk and reward fully considered. If there is an exclusion or limitation of liability, it is likely that replacement insurance, which does cover pandemic flu risk, will not be available or will be very expensive, while the threat of pandemic flu is high.

To discuss any concerns with your supply chains and measures you should be considering, contact Carys Thompson on or call Carys on 0114 252 1485.

Share ...
Get in touch
Carys Thompson Partner
Get in touch