Contingent vs. Regular Interruption Insurance

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Contingent vs. Regular Interruption Insurance Regular business interruption insurance coverage provides financial assistance for ongoing expenses when a fire, burglary, or other covered event disrupts your business. To qualify, the incident has to immediately affect your business. Contingent business interruption kicks in when a supplier, business partner, or large customer has a similar problem. It pays for ongoing expenses while you search for a new supplier, partner, or major customer to restore lost sales. In other words, it provides a stopgap while you look for a solution to keep your business open. How do you know if you need this form of insurance? The answer depends on how reliant your business is on key vendors, business partners, or customers. Common factors to consider Consider contingent business interruption insurance if: -You depend on one or several manufacturers to provide the products you sell. -The main product you manufacture relies on only one or a few suppliers of raw materials. -One customers or a small number of customers account for the bulk of your sales. -Your company relies on traffic from a nearby retail business or attraction for the bulk of its sales. Key differences are seen when we look at the triggering event, coverage Scope, policy complexity. #BeNewinsurance #InsurTech #inclusiveinsurance #insurance #reinsurance #takaful #climatechange

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