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Possible Insurance Coverage Options for Tariff and Trade Risks

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Substantial and widespread tariffs and disruptions in international trade have caused significant economic instability, which may result in major losses for many businesses. In these circumstances, companies should not forget to look to their insurance programs for potential coverage of such losses. While a search for the word “tariff” in a company’s insurance policies is unlikely to find the word, protection against losses related to tariffs and other international disruptions does exist. Many insurance policies may seem a poor fit for such coverage, but coverage extensions in some common insurance policies, as well as tailored “niche” policies, may respond to such losses. Further, losses that arise indirectly from tariffs or trade policies also may be covered. This article provides guidance on where a company can look for such coverage and when to seek coverage advice.

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