Directly and indirectly, the devastating earthquake and nuclear crisis have created countless large-scale problems and have caused at least $35 billion of insured losses. The disaster comes as a warning to many business owners that nodisastrous events are out of the question.

When earthquakes hit major centers of economic activity, the vulnerability of global supply chains becomes clear. Disruption in supply chain combined with terrorism, war, economic and financial crises, political and social instability means businesses cannot ignore the need for proper risk management.

The disaster in Japan should not just open businesses' eyes to the importance of earthquake insurance. There are many things that can hurt a company that are not traditional insured. Global sourcing of commodities and products can leave you exposed to supply chain disruptions, energy price hikes, embargoes and many more risks.

Having a solid business contingency plan in addition to proper insurance coverage is a key component that, in conditions like these, separates businesses that will thrive from those that don’t survive.