Spurred by a combination of growing public support for environmental causes and an increase in economic incentives and regulatory mandates, clean technology has become a booming industry. But while these companies are growing more sophisticated, their commitment to risk management has not always followed suit, according to insurer Chubb’s “2012 Clean Tech Industry Survey.”
For instance, despite the fact that three out of four clean-tech companies operate internationally, 75% have little or no concern with supply chain stability, and 36% do not have a supply chain disruption plan. Blind spots persist in other areas as well. Almost 60% of clean-tech companies do not have an up-to-date business recovery plan, half do not have a cyber-security incident response plan, and 45% lack plans and procedures to prevent cargo theft.
Additionally, 71% of those companies that conduct business overseas do not purchase workers compensation insurance for travelling employees. In fact, the top motivator for purchasing insurance, according to respondents, was because it was a requirement, while only 25% did so as a means to mitigate injury or damage. For these burgeoning companies, this short-sighted outlook could prove to be their undoing.