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Published in association with
LET’S be honest – war is not just something we fear on the news any more. With conflicts raging in the Middle East, Russia and Ukraine still locked in hostility, and the US now actively involved with bombings, it all feels a bit too close for comfort.
Add in the UK potentially playing peacekeeper (or caught somewhere in the middle) and it is easy to forget that these events do not just affect governments. They can knock your business sideways too.
When we talk about the impact of global volatility, it is not just about rising fuel prices or nervous markets. Real businesses, like yours and mine, can be caught in the crossfire, especially when supply chains get disrupted.
A real-world example
I will never forget a client who came to me after a war zone delay nearly finished their business off. They were waiting on a boatload of solvent-based materials that were crucial to their manufacturing.
The ship got stuck in a port because of escalating tensions. Time ticked on. The materials had a short shelf life and by the time they were finally released, they were unusable.
That single event cost the business over £400,000. Lost contracts and downtime meant the true loss was more than £1 million. And the worst bit? They were not covered. Their old policy had war exclusions baked in and they had no idea.
How do you protect yourself?
It starts with knowing what your insurance actually covers.
Check your cover
Let’s keep it simple: don’t wait until a crisis hits to find out your policy does not stretch that far. Make sure you:
- Understand the exclusions: War exclusions are standard in most policies. That includes property, marine, and business interruption. If conflict plays a part in your loss, many insurers will say “sorry, not covered”.
- Look at cargo cover: If you import or export, ask yourself if the goods are covered from door to door. Don’t assume your supplier or logistics partner has it nailed. If something gets stuck in transit, is it your loss or theirs?
- Know your business interruption triggers: Does your policy pay out for loss of revenue, or just increased costs? What needs to happen before a claim can be made?
- Watch for territorial exclusions: Some policies exclude specific regions. If your supply chain runs through these hotspots, you might be exposed.
The takeaway
Global volatility is not just background noise any more. It has real, tangible impacts on your supply chain, your customers, and your bottom line.
Insurance will not solve a war, but it can help soften the blow when your business gets caught in the ripples. Just make sure it is actually there when you need it. If you’re not sure, give your broker a ring. Or better yet, get someone to take a fresh look. Because it is not about scaring people. It is about helping them avoid something avoidable.
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