The Trump administration’s pledge of across-the-board tariffs have many U.S. companies concerned about higher-priced inputs and disrupted supply chains. The new administration recently confirmed that it would be levying aggressive tariffs on U.S. trading partners, including 25% tariffs on Canada and Mexico and a 10% duty on China, adding to the growing concern among businesses who rely on imports and relationships with international clients. The tariffs are predicted to impact a wide-range of industries, from pharmaceuticals to the steel industry, as well as overseas producers of copper and aluminum. Indeed, even the insurance industry is expected to feel the impact, as 25% tariffs on imported goods from Canada and Mexico may raise costs for insurance carriers responding to property-related losses—including, for example, losses resulting from the ongoing Los Angeles fires—and thus might increase premiums on policyholders purchasing home and property insurance.

This article explores the insurance coverage options, such as political risk insurance and trade credit insurance, that can offer coverage to protect against and mitigate trade-related risks. This article also provides advice on how policyholders can maximize coverage should a loss occur, and further discusses the impact that tariffs might have on the insurance market, including premiums for certain types of insurance lines.

...

To read this full article, click here.