Tokio Marine, Marsh launch port disruption insurance

Standalone coverage provides up to $50m in capacity for losses.

Tokio Marine Kiln (TMK) and Marsh have introduced an exclusive insurance facility for ports and terminals, covering business interruption caused by trade disruption. 

“Business interruption 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,” Louise Nevill, CEO, UK Marine, Marsh Specialty, said.

”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,” Nevill added.

This global, standalone coverage provides up to $50m in capacity for losses linked to geopolitical events, weather-related incidents, and other disruptions that affect trade operations.

The product, developed by Marsh's Marine Cargo & Logistics specialists and led by Ed Parker, head of Special Risks at TMK, is available to Marsh clients worldwide. 

It addresses a gap in traditional insurance, which typically only covers business interruption from physical damage or barriers to access at ports. The new facility offers additional protection when ships are diverted or refuse to dock due to external factors such as geopolitical tension or severe weather.

This launch follows Marsh's $50m port blockage insurance introduced earlier, which covers revenue losses caused by third-party incidents, including vessel sinkings or natural disasters. 

Recent global trade disruptions, including the Red Sea crisis, the conflict in Ukraine, and a significant drop in Suez Canal traffic, highlight the growing need for such coverage.