Following the devastating peatland and forest fires in Russia and resultant smog in Moscow and the surrounding regions, Marsh is urging affected organisations to review their current business continuity plans and insurance provision.

Businesses should immediately reassess their business continuity plans with employees, customers, suppliers and other relevant stakeholders. In addition, firms should review the terms and conditions of their insurance policies with their insurance brokers and claims representatives to identify whether coverage is in place for any losses.

Business continuity and supply chain considerations:

Organisations that keep their business continuity and supply chain planning up-to-date, well-tested and flexible are better placed to cope with threats to their supply chains, the challenges of staff absence, and potentially severe financial implications than those businesses that have not.

To reduce the potential impact of the fires, Marsh recommends that organisations consider:

•Whether current business and operations contingency plans address this event and its potential impacts
•Whether there is a potential for property damage to any location and if so, identify what steps should be taking to protect operations
•If there be damage to the property, do civil authority directions prevent or prohibit access to/from affected location(s)
•If disruption to suppliers or customers precludes receiving or selling products or services
•Becoming familiar with the contingency plans of third parties and related businesses, such as suppliers, logistics providers and the public infrastructure
•Alternative routes to market if goods cannot be moved in a timely manner
•Arranging provision for storage of excess goods, components/ingredients and finished products, if necessary


Insurance considerations:

Affected organisations should review the terms and conditions of their insurance policies to determine what coverages may apply. Additionally, they should closely document all related financial losses to support any claims to be made under the applicable policies.

Organisations should also review the contamination and pollution terms of their property policies to understand the available coverage and limitations. They should also consider supply chain coverage that does not require the same property damage triggers as traditional all-risk property policies.

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