The Need For and Usefulness of a Business Interruption Agreement in a Time of Uncertainty

Published: July 17, 2020

The Independent Packaging Association announced it has crafted a template that can serve as an agreement between an AICC member and another in the event that the member company cannot complete work due to pandemic, natural disaster, or other unforeseen, disruptive circumstances.

Earlier this year at the onset of the pandemic when states were ordering shutdowns, many members feared having to cease operations for a time if there were positive cases in their plants. Customers of some AICC members asked them about their “contingency” or “business interruption” plans if they had to close. How would these customers have their box orders met?

This document, crafted by AICC legal counsel David Goch of the firm Webster, Chamberlain, & Bean, is meant to serve as a guide for an AICC member company to complete customer commitments with the support of another converter in the event of a business interruption, while also respecting all applicable fair trade and anti-trust laws. AICC recommends that this document be reviewed and modified to suit by the member’s attorney.

This downloadable template is available under “whitepapers” and is free of charge to AICC members, and for $250.00 to non-members.

David Goch will speak about the need for a business interruption agreement and best practices for utilizing such a document during the next AICC packaging industry COVID-19 videoconference on Friday, July 24, at 2:00 pm ET.

A recording of the videoconference will be available on Monday, July 27.

For more information, visit www.aiccbox.org.