Commercial brokers in Canada have a risk management opportunity based on the results of a new survey that shows clean tech companies have a supply chain exposure.
Many clean tech companies may not be paying enough attention to managing the risks of sourcing components and sending goods and employees across borders, according to a new study of 268 clean tech companies in Canada and the United States by from the Chubb Group of Insurance Companies.
Thirty-six per cent of the clean tech companies surveyed have not created a supply chain disruption plan, the Chubb 2012 Clean Tech Industry Survey found. Of the 40% of clean tech companies that rely on foreign businesses for their supply chain, 45% source components from Chinese companies, and 75% have little or no concern about supply chain stability.
Additionally, 45% of all survey respondents have not instituted best practices to help prevent cargo theft, and 59% do not have an up-to-date business recovery plan. More than half of the 71% of clean tech companies that conduct business abroad do not purchase workers compensation protection for employees who travel outside the United States.
“Clean tech entrepreneurs may be accustomed to taking risks, but overlooking ways to reduce supply chain and other global business exposures could affect their companies’ viability,” said Amy Ingram, vice president and worldwide clean tech manager for Chubb. “A catastrophe like the Japanese tsunami can shut down suppliers for months and sink a company that does not have a business continuity and recovery plan.”
The Chubb 2012 Clean Tech Industry Survey was conducted by Hansa GCR, an independent public opinion and market research firm.
The member insurers of the Chubb Group of Insurance Companies form a multi-billion dollar organization providing property and casualty insurance for personal and commercial customers worldwide through 8,500 independent agents and brokers.