Business Interruption vs Contingent Business Interruption?
Business-interruption coverage responds to qualifying damage at your own premises; contingent business-interruption coverage may extend it to a scheduled supplier or customer whose damage disrupts your business.
Contingent business interruption (CBI) addresses certain losses when a supplier or customer’s property suffers qualifying damage and disrupts your business. CBI often requires a covered physical-damage cause and may apply only to scheduled or otherwise defined dependent locations. It is narrower than broad protection against every supply-chain problem.
Check direct versus indirect supplier definitions, scheduled premises, covered causes, waiting periods, and limits. Update the schedule when critical suppliers change. If the concern is labor disruption, transport closure, or a nonphysical failure, ask whether separate supply-chain coverage addresses it.
Coverage Guides Related to Commercial Property Insurance
Sources for This Answer
- Business Interruption and Business Owner Policy. National Association of Insurance Commissioners; Background; Commercial property; Business interruption; Contingent business interruption. Accessed 2026-09-25.
- What Business Income Loss Coverages Are Out There? Learn the Endorsements That Can Help with Lost Business Income. National Association of Insurance Commissioners; Top Considerations; Things You Should Know: business income, extra expense, service interruption, contingent business interruption, civil authority. Accessed 2026-09-25.
- Protecting your business against contingent business interruption and supply chain disruption. Insurance Information Institute; Limits of contingent business interruption; Broader supply chain coverage. Accessed 2026-09-25.