What happens when something occurs outside of your control? This question is answered best in insurance through a coverage called "Contingent Business Interruption". The word "contingent" can be defined as "a group united by some common feature, forming part of a larger group". In business this comes down to the day-to-day operations and all of the various factors that can impact them.
Imagine all the utilities were cut off to a business for three weeks. Without power and water most businesses could not operate and would be forced to close their doors. This wouldn't be covered by a typical insurance policy because no damage to property would have occurred.
Contingent business interruption is designed to pick up those exposures where a business is "contingent" on others to operate. This coverage looks at a couple of key points which we will explore in a little more detail:
Getting contingent business interruption insurance can be very important for your business. Talk to your insurance broker about contingent business interruption insurance and learn about the potential disruptions to your business.
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