While the main concern in China is managing the current coronavirus outbreak, economists have started to raise other concerns. China produces around 70% of the world’s vanadium alloys and accounts for 90% of the global electrolytic-manganese output. These two metals are used throughout the world in various industries and markets. The market for both of these metals is experiencing an increase in cost due to the following effects of the virus outbreak:
- mandatory shutdowns;
- stranded employees, due to quarantines and travel bans;
- disruption in the trucking industry; and
- decrease in ship exports/imports due to health checks of passengers.
Business Interruption – Civil Authority / Emergency Response Risk, Suppliers / Supply Chain Interruption, Loss of Market, and Loss of Key Supplier are just a few of the coverages offered in Oxford’s Actual Net Loss Insurance Policy that could help relieve some of the income loss in an event such as this.
To discuss this further with an Oxford Risk Management Consultant, please contact our office at 410.472.6490.
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