Contingent Business Interruption

Contingent Business Interruption (CBI) insurance reimburses a company for lost profits and other possible transfer risks, such as necessary continuing expenses, due to an insurance loss suffered by one or more of its suppliers or customers.

What is the Difference Between CBI and Business Interruption Insurance?

Business Interruption Insurance compensates the policyholder for a loss resulting from damage to its own property, CBI allows you to transfer risk of certain losses to the property of a third party.

Contingent Business Interruption is triggered if there is:

1. Direct physical loss or damage to a dependent property
2. The loss results in a suspension of operations at a covered location and;
3. The loss or damage is caused by a covered cause of loss

CBI coverage is provided for a covered loss during what is called the “period of restoration”. This is what is considered by the insurer to be the reasonable amount of time it should take the dependent property to repair the damage and resume its normal operations.