{"id":4166,"date":"2026-04-12T13:25:21","date_gmt":"2026-04-12T13:25:21","guid":{"rendered":"https:\/\/www.insuracarelife.com\/blog\/formosa-petrochemicals-force-majeure-supply-chain-disruptions-potential-insurance-implications-lathrop-gpm\/"},"modified":"2026-04-12T13:25:21","modified_gmt":"2026-04-12T13:25:21","slug":"formosa-petrochemicals-force-majeure-supply-chain-disruptions-potential-insurance-implications-lathrop-gpm","status":"publish","type":"post","link":"https:\/\/www.insuracarelife.com\/blog\/formosa-petrochemicals-force-majeure-supply-chain-disruptions-potential-insurance-implications-lathrop-gpm\/","title":{"rendered":"Formosa Petrochemical\u2019s Force Majeure \u2013 Supply Chain Disruptions &#038; Potential Insurance Implications | Lathrop GPM"},"content":{"rendered":"<div id=\"html-view-content\">\n<p class=\"wp-block-contentpilot-introduction\"><strong>The recent force majeure notice issued by Formosa Petrochemical Corporation \u2013 due to the closure of the Strait of Hormuz and its global impact \u2013 is disrupting the availability of key petrochemical inputs across multiple industries, including plastics, packaging, automotive components and consumer products.<\/strong><\/p>\n<p>For companies dependent on Formosa or its downstream distributors, these interruptions may have immediate operational and financial consequences. While force majeure provisions may address contractual performance obligations, they do not answer a separate \u2013 and often overlooked \u2013 question: can your business recover resulting losses under existing insurance programs?<\/p>\n<h2 class=\"wp-block-heading\">Understanding Coverage Options<\/h2>\n<p>In certain circumstances, supply chain disruptions of this magnitude can implicate contingent business interruption or dependent property coverage under commercial property policies. Coverage is highly policy-specific and depends on a number of factors, including:<\/p>\n<ul class=\"wp-block-list\">\n<li>Whether the claim can be connected to \u201cdirect physical loss or damage,\u201d<\/li>\n<li>How your specific policy defines \u201cdependent property,\u201d<\/li>\n<li>Whether your policies require specific scheduling of suppliers, and<\/li>\n<li>The scope of any applicable exclusions.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Taking Action To Protect Your Business<\/h2>\n<p>Even where coverage is uncertain, <strong>timely notice to insurers is essential to preserve rights and avoid later coverage defenses<\/strong>. Companies experiencing related disruptions should consider a prompt review of their property and business interruption programs, as well as any specialty supply chain, trade disruption or political risk policies that may apply.<\/p>\n<p>[View source.]<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The recent force majeure notice issued by Formosa Petrochemical Corporation \u2013 due to the closure of the Strait of Hormuz and its global impact \u2013 is disrupting the availability of key petrochemical inputs across multiple industries, including plastics, packaging, automotive components and consumer products. For companies dependent on Formosa or its downstream distributors, these interruptions [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4167,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1096,2940,249,2937,2943,2941,11,2942,2939,2938,1487,1095],"class_list":["post-4166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-chain","tag-disruptions","tag-force","tag-formosa","tag-gpm","tag-implications","tag-insurance","tag-lathrop","tag-majeure","tag-petrochemicals","tag-potential","tag-supply"],"_links":{"self":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts\/4166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/comments?post=4166"}],"version-history":[{"count":0,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts\/4166\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/media\/4167"}],"wp:attachment":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/media?parent=4166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/categories?post=4166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/tags?post=4166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}