Contingent Business Interruption
Definition:
Coverage for lost income caused by damage to a supplier’s or customer’s property.
Explanation:
This is primarily a commercial coverage, protecting businesses from indirect interruptions when another property critical to operations is damaged.
Example:
If a factory you depend on for parts burns down and you cannot operate, contingent business interruption coverage may cover your lost revenue.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.