The problem is that leaders tend to stop there, seeing insurance as aimed solely at mitigating losses. This amounts to a strategic blind spot. The reality is that for most organizations, insurance can be a key strategic lever, helping enable liquidity, preserve margins, and support long-term decision-making. Yet unlike, say, automation or logistics tech, it rarely gets much attention among the C-suite.

Road to resilience

This has to change. Today’s trade complexity is more than a momentary fluctuation based on a single event, such as the pandemic. It’s a lasting structural shift that can’t be solved with efficiency gains and that requires financial agility to retain competitive edge. It’s here, most of all, where insurance can play a valuable role.

This value can be broadly categorized into three areas. The first is financial safeguards, including trade credit insurance that protects manufacturers against payment defaults from overseas buyers, and political risk insurance that covers losses from government embargoes or export restrictions.

The second is continuity safeguards. Unplanned downtime costs US manufacturers tens of billions every year. And while no policy can prevent a shutdown, contingent business interruption coverage can stabilize cash flow when plants, suppliers, or logistics partners fail. This turns lost production hours into breathing room for leaders to reshape networks, secure alternatives, or fast-track new capacity.

As for the third type of insurance value, this involves being an enabler of transformation. Examples are construction and engineering insurance for reshoring, environmental liability coverage, and reinsurance arrangements that spread exposure across regions and markets as companies expand.

In each case, these are no longer fringe tools but foundational assets on the road to resilience. Solutions that, when deployed correctly, can strengthen continuity, preserve liquidity, and accelerate firms’ ability to adapt to shifts in market conditions.

Eyes wide open

This is not to say insurance alone is the solution to today’s tumultuous trading landscape. It doesn’t replace operational changes. Rather, it complements them by buying manufacturers time for longer-term redesigns. In fact, in a world where risk and trade uncertainty are a given, it may be one of the few tools capable of supporting transformation at scale.

Of course, none of this happens without alignment. The risk manager may bring the technical expertise, but it’s up to senior leaders to position insurance as a strategic lever – then use it that way. This means shifting from a model where insurance is procured, to one where it’s planned and being willing to invest in unfamiliar solutions that protect the very systems firms are working so hard to evolve.

Most of all, it means creating a supply chain strategy that recognizes the role of insurance in futureproofing the organization. When you change the way you look at things, the things you look at change. For manufacturers, treating insurance as a strategic investment not a cost can ensure they navigate a complex trade environment with their eyes wide open.

The problem is that leaders tend to stop there, seeing insurance as aimed solely at mitigating losses. This amounts to a strategic blind spot. The reality is that for most organizations, insurance can be a key strategic lever, helping enable liquidity, preserve margins, and support long-term decision-making. Yet unlike, say, automation or logistics tech, it rarely gets much attention among the C-suite.

Road to resilience

This has to change. Today’s trade complexity is more than a momentary fluctuation based on a single event, such as the pandemic. It’s a lasting structural shift that can’t be solved with efficiency gains and that requires financial agility to retain competitive edge. It’s here, most of all, where insurance can play a valuable role.

This value can be broadly categorized into three areas. The first is financial safeguards, including trade credit insurance that protects manufacturers against payment defaults from overseas buyers, and political risk insurance that covers losses from government embargoes or export restrictions.

The second is continuity safeguards. Unplanned downtime costs US manufacturers tens of billions every year. And while no policy can prevent a shutdown, contingent business interruption coverage can stabilize cash flow when plants, suppliers, or logistics partners fail. This turns lost production hours into breathing room for leaders to reshape networks, secure alternatives, or fast-track new capacity.

As for the third type of insurance value, this involves being an enabler of transformation. Examples are construction and engineering insurance for reshoring, environmental liability coverage, and reinsurance arrangements that spread exposure across regions and markets as companies expand.

In each case, these are no longer fringe tools but foundational assets on the road to resilience. Solutions that, when deployed correctly, can strengthen continuity, preserve liquidity, and accelerate firms’ ability to adapt to shifts in market conditions.

Eyes wide open

This is not to say insurance alone is the solution to today’s tumultuous trading landscape. It doesn’t replace operational changes. Rather, it complements them by buying manufacturers time for longer-term redesigns. In fact, in a world where risk and trade uncertainty are a given, it may be one of the few tools capable of supporting transformation at scale.

Of course, none of this happens without alignment. The risk manager may bring the technical expertise, but it’s up to senior leaders to position insurance as a strategic lever – then use it that way. This means shifting from a model where insurance is procured, to one where it’s planned and being willing to invest in unfamiliar solutions that protect the very systems firms are working so hard to evolve.

Most of all, it means creating a supply chain strategy that recognizes the role of insurance in futureproofing the organization. When you change the way you look at things, the things you look at change. For manufacturers, treating insurance as a strategic investment not a cost can ensure they navigate a complex trade environment with their eyes wide open.