86% of Companies Face Supply Chain Losses But Lack Insurance

A comprehensive analysis by Gallagher reveals a critical vulnerability in corporate risk management: while 86% of companies experience measurable supply chain losses, the vast majority lack adequate insurance or contingency coverage to mitigate these impacts. This widespread exposure creates compounding financial and operational risks across industries, from manufacturing to retail. The finding underscores a fundamental mismatch between supply chain disruption frequency and corporate preparedness, suggesting that many organizations operate with significant unquantified risk. For supply chain professionals, this data points to an urgent need for comprehensive risk mapping and coverage assessment.

Supply chain disruptions—whether driven by logistics failures, supplier bankruptcy, natural disasters, or geopolitical events—have become routine operational challenges rather than exceptional scenarios. Yet most companies treat them as low-probability events when designing insurance and business continuity strategies. This gap creates financial exposure that extends beyond operational recovery costs to include lost revenue, customer penalties, and competitive disadvantage during recovery periods. The broader implication is that supply chain resilience is no longer a competitive differentiator but a baseline business requirement.

Organizations must reassess their risk profiles, quantify potential loss scenarios, and ensure that insurance products and operational buffers (such as safety stock, dual sourcing, and logistics diversification) align with actual disruption probabilities and potential severity. Companies failing to address this gap face both financial vulnerability and governance risk.