Buyers review new kinds of supply chain risk coverage; Interest increases, but takeup still slow for specialized cover.

Byline: MIKE TSIKOUDAKIS

Insurance buyers are looking beyond traditional supply chain insurance for a coverage that encompasses nonphysical damage-related events that may disrupt their supply chain.

While interest among risk managers has increased and supply chain exposures top the list for many C-suite executives, takeup of supply chain insurance that can be triggered by an event that is not limited to physical damage or loss is quite slow, brokers and insurers said.

Types of supply chain events covered in nonphysical damage-related policies include pandemic, political risks and regulatory action, among others.

Traditional business interruption and contingent business interruption policies typically are triggered by an event that causes physical damage or loss to a company's supplier.

"If you're a company examining your supply chain, it doesn't really matter …