Contingent Business Interruption Insurance – Are you protected from third party disruptions?
Contingent Business Interruption Insurance – Are you protected from third party disruptions?
If you answer yes to any of the following questions, your company needs Contingent Business Interruption Insurance.
Do any of your company’s operations heavily rely on a single or select group of third party providers of goods or services? Would a long-term computer outage disrupt your company’s ability to maintain normal business operations? Would losing a key source of raw material or component parts from a supplier interrupt your business operations? Would a transportation disruption disrupt your business?
Following are four situations in which Contingent Business Interruption Insurance coverage is widely used:
- When the insured depends on a single supplier or a few suppliers for materials.
- When the insured depends on one or a few manufacturers or suppliers for most of its merchandise.
- When the insured depends on one or a few recipient businesses to purchase the bulk of the insured’s products.
- When the insured counts on a neighboring business to help attract customers, known as a leader property.
Your KMRD relationship manager can provide valuable advice to maximize your company’s recovery for loss from a disruption in your supply or distribution chain with Contingent Business Interruption Insurance.
Please contact a KMRD Partners relationship manager to review your firm’s liability coverage, and choose the best insurance transfer mechanism to cover any exposures.
KMRD reduces the overall cost of risk by producing a greater value
for each commercial insurance dollar spent, while utilizing an enterprise risk management approach to engineer the optimal solution.
We are dedicated to the mitigation of risk, safety and loss control and claims advocacy, while helping firms recover from unplanned events that wait on the other side of one minute from normal. For a quick review of insurance terminology and coverages, visit our Insurance Reference Library.
To identify and correct coverage and service gaps in your insurance coverage contact us at contactus@kmrdpartners.com before one minute from normal strikes.
Need to deliver better risk management results for your company? Schedule a brief demo of our unique collaborative risk management system, KMRD XChange.
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