What is Contingent Business Interruption Insurance for Manufacturers?

Contingent Business Interruption Insurance covers your lost income and extra expenses when a covered loss at a key supplier, customer, or business partner location disrupts your operations. 

Even though the physical damage did not occur at your facility, you are covered for the resulting business income loss.

Why it Matters for Manufacturers

Modern manufacturing depends on complex supply chains—if your sole supplier of a critical component experiences a fire, your production line stops even though your facility is undamaged. 

CBI insurance protects you from income loss caused by these external disruptions. This is increasingly critical as manufacturers adopt just-in-time inventory practices and depend on specialized suppliers. 

Without CBI coverage, a disaster at a supplier facility could force you into financial distress despite having no direct damage yourself.