Even without owned assets in a political hotspot a company dependent on the movement of goods through the region faces exposure to risk caused by unfolding political events.
The Suez Canal and the Straits of Hormuz are main arteries of world trade. If they close many supply chains will be disrupted.
For example, in November 2004 one vessel blocked the Suez Canal for three days delaying 140 vessels.
Sanctions can also have an impact - for example an imposition of sanctions on the Ivory Coast is having a huge impact on cocoa supply chains.
Non-physical damage business interruption/trade disruption insurance are proven claims paying policies that can protect your client's revenues, extra expenses and contractual penalties in situations beyond their control.
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