What is the purpose of the contingent business interruption form?

The purpose of the contingent business interruption form is to provide coverage for loss of income that a business suffers due to damages to a key supplier or customer. This form is essential because it recognizes that businesses often rely on a network of suppliers and customers to operate effectively. If a key supplier experiences a loss—such as a fire or flood—that interrupts their ability to deliver goods, or if a primary customer suffers a similar setback that prevents them from purchasing products, the business can face significant income losses.

By having this coverage, businesses are protected against financial disruptions that stem from the operations of others outside their control. This type of insurance ensures that businesses can maintain cash flow and continue meeting their obligations even when key relationships are impacted due to unforeseen events.